Insurers sound warning on climate change

Claims for storm and flood damage in the UK have doubled to £6 billion over the last five years - and could see a further tripling by 2050, according to a report by the Association of British Insurers.1

The report points to a significant increase in the number of months of both extreme hot and wet weather during the 1990s, while the number of winter storms crossing the UK has doubled in the last 50 years.

The ABI says that the insurance industry is "in the front line of climate change". As well as the increasing exposure to climate-related claims, the report points to the need to develop new underwriting skills and risk transfer mechanisms; the impact of tightening emission standards on investment portfolios; reputational risk issues; and the need to engage with the Government on future climate policies.