| Client: | Association of British Insurers |
|---|---|
| Project: | The Financial Risks of Climate Change |
| Year: | 2005 |
Scope:
The Association of British Insurers (ABI) commissioned Climate Risk Management (the former trading name for Acclimatise) to assess the costs of climate change on natural catastrophe insurance and the resultant impacts on financial markets. A comprehensive review of all available industry and academic research was undertaken.
The report was released at a conference on 29 June 2005 hosted by the ABI. The conference brought together for the first time senior representatives of leading insurance companies from around the world to discuss the implications of climate change for insurance markets.
Margaret Beckett, the UK Secretary of State for Environment, Food and Rural Affairs, gave the keynote address.
This ground-breaking work focused on the potential impacts of changing weather costs on global capital requirements for the insurance and reinsurance sectors. Even quite small increases in the intensity of major storms (hurricanes, typhoons, windstorms), as predicted by the latest climate change science, could increase damage costs by at least two-thirds by the end of the century. The most extreme storms could become even more destructive, making insurance markets more volatile, as the cost of capital required to cover such events increases.
The report is now used as a standard reference source by financial correspondents, insurance companies and research institutions.
Other information:
Download a copy of the “Executive Summary” and the “Technical Annexes” from our resources section
Acclimatise expertise:
- Analysis and review of academic and industry reports on climate change
- Development of an innovative approach to risk assessment
- Extensive stakeholder engagement, driving behind ‘published’ positions
- Understanding diverse positions and attitudes.