Insurance & Climate change My day was brightened this morning by noticing a colourful advertisement in my newspaper of choice for the new Coral Reefs – Secret Cities of the Seas exhibition which is being staged by the Natural History Museum.
It was not so much the witty depiction of the reef denizens as stay at home dad (seahorse) or security guard (trigger fish) that caught my eye but the fact that the sponsor was Catlin, a medium-sized reinsurer specializing in property & casualty lines.
Further proof, if any was needed, of the insurance industry’s growing engagement with the issue of climate change and its effects.
Furthermore, not only has the chairman of Lloyd’s of London said publicly that climate change is their (Lloyd’s) number one issue but Europe’s largest insurer, Allianz, has fleshed his hypothesis out by saying that losses from extreme events in an average year will increase by 37% within a decade.
This has now moved from the realms of scientific and political debate into the world of balance sheets and profit and loss.
The costs of climate change will increasingly be measured not only in terms of government expenditure on renewable energy and carbon mitigation but also in business and household insurance premiums.
Whether or not you believe in the science or think that it is someone else’s responsibility to address the issue, the costs will catch up with all ofus in the end.