Insurers Must React To Climate Change

Climate change will increase the frequency and severity of extreme weather events in the United Kingdom and will raise questions about the insurability of some risks, according to a report from the Assn. of British Insurers. “The insurance industry has a role, on behalf of its customers and shareholders, in highlighting the scale of the risks, and examining steps that are needed by all parties (including the government) to manage risks and ensure that financial protection remains available for the majority of customers,” the report states. In addition, insurers must develop new underwriting skills to enable them to help buyers limit liabilities arising from climate change regulation, the report says. For example, businesses responsible for high emissions of greenhouse gasses could potentially be held liable for damage that is caused by climate change, the report notes.