Report: Coping with Climate Change – Risks & Opportunities for Insurers

February 27th, 2009 by Richard Lord

The Chartered Insurance Institute’s third major study into the effects of climate change for the insurance sector, Coping with Climate Change – Risks and Opportunities for Insurers, looks at strategic issues that face the insurance industry from the perspective of UK-based insurance practitioners. Building on previous works on climate change by the Chartered Insurance Institute in 1994 and 2001, the study considers how climate change affects all aspects of the insurance industry, including its core functions of underwriting, claims handling, investment, and management, and examines the implications for customers in key market segments. It takes account of current scientific research in the field, relevant political initiatives, the recent experience of the insurance markets and developments in the global economy.

The Rocquaine Bay seawall toppled by the storm surge of 10 March 2008 - (click image to expand © RLLord)

The Chartered Insurance Institute determines that climate change increases the possibility of insurance market failure. Global warming may be compounding catastrophe losses by two percent per year.

A large wave from Havelet Bay spills over parked cars on 10 March 2008 - (click image to expand © RLLord)

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