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Climate of fear
Insurers face the risk of being swept away if they fail to take adequate measures to cope with climate change, warns the Lloyd’s insurance market. The 380 Risk Project, set up to stimulate debate on key insurance matters, has issued this stark warning in a report tersely entitled Climate Change: Adapt Or Bust.
According to the report, natural catastrophes killed 97,000 people last year and cost the insurance industry a record £42 billion. Despite debates about the causes and effects of climate change, says the report, ‘scientific evidence shows that global temperatures, sea levels and rainfall are rising faster than previously thought and, if the industry wants to survive, it must adapt its responses sooner rather than later’.
Not everyone is taking fright. The Hiscox insurance group says US natural catastrophes provide one of the few areas where premium rates remain strong in a generally weak market.
‘We have taken advantage of this and are pleased at the continued growth of our catastrophe reinsurance business,’ boasts Hiscox. The company clearly believes the old market saying: ‘There are no bad risks, only bad premiums.’
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