Executive Summary The transition economy. What is it? How did we get here? What are the implications for the future? If the global pandemic has taught us anything, it’s that we need to develop resilience and become more conscious of sustainability trends within our businesses and societies. The next two decades will see After all, the future of insurance and significant change, thanks to evolving finance is in your hands. This paper demographic trends, resource aims to start the conversation. But scarcity, climate change, and rapidly- where will it lead us? How best to adapting technology. respond? That’s still up for discussion. This discussion paper sets out to I hope you find the insights shared define the transition economy for the stimulating, challenging, re- 21st century. evaluating - maybe even a little Firstly, what it is. Secondly, what frightening. If this helps us develop a transition risks the insurance and path to designing more sustainable financial services industries will have businesses, products and services, I to grapple with as we seek to shape - will consider this initiative a success. and adapt to - this new normal. This paper assesses the significant Sabine VanderLinden drivers of change that have led to “Reinventing the industry I care for.” where we are now. It goes on to Co-founder, CEO & Managing Partner highlight the challenges facing the Alchemy Crew financial services industry. And it explores how we can respond to the new class of transition risks we see emerging daily. We designed this paper to be co- We should learn from this created with 60 senior leaders who crisis. Digital, resilience, and attended and engaged in a private trust are essential to building discussion session we hosted on a true sustainable world. March 4th. Now we want to open this conversation to the many. Please help us with your feedback and Jean-Pascal Tricoire insights regarding what matters most Chairman & Chief Executive Officer for you and your organization. Schneider Electric 3