Eco-Insurance: Development Trends and Mechanisms to Support a Green Economy

Abstract

Today, as environmental risks become increasingly tangible and natural resources increasingly vulnerable, the topic of eco-insurance is coming to the forefront. The world is gradually transitioning to a green economy model, where sustainable development is impossible without mechanisms that protect both business and the environment. Eco-insurance serves a dual function here: on the one hand, it helps mitigate the consequences of environmental disasters and accidents, and on the other, it encourages companies to implement more responsible and safe technologies. This article examines key trends in the formation and development of eco-insurance, analyzing international experience—from Europe to Asia—as well as the role of government and the insurance sector in creating a favorable environment for its implementation. Particular attention is paid to the connection between eco-insurance and the ESG approach and sustainable development goals. The results of the study demonstrate that eco-insurance has the potential to become more than just a financial in strument, but an important element in the transition to a new economic system that values environmental responsibility, transparency, and long-term sustainability. In writing this article, the goal was to examine the theoretical and practical aspects of eco-insurance as a tool for supporting a green economy and to offer recommendations for its development in the context of sustainable development. The development of an eco-insurance system not only helps minimize environmental and financial risks but also stimulates the economic transition to sustainable and resource-efficient production and consumption models. UDC: 368.18:504.05; JEL: G2, G22, G52