implications of climate change for insurance ciwem07
TRANSCRIPT
Planning for climate change: sustainable insurance
Jane Milne
Climate Change Leader
Association of British Insurers
Adaptation responses needed
•Habitable housing•Flexible commercial
buildings•Risk based development•Reliable transportation•Secure energy supplies•Safe and secure water
supplies•Well educated workforce•Healthy people•Resilient trading
partners
Which of these events is most important? (YouGov, August 2007, 2012 respondents)
Flooding 85% 16%
Drought/water restrictions 57% 32%
Heatwaves 40% 27%
Increased hay fever 28% 21%
Subsidence 26% 8%
Windstorms 23% 14%
Which of these events is most important? (YouGov, August 2007, 2012 respondents)
Flooding 85% 16%
Drought/water restrictions 57% 32%
Heatwaves 40% 27%
Increased hay fever 28% 21%
Subsidence 26% 8%
Windstorms 23% 14%
Likely insurance costs
Climate change and UK weather damage
02468
1012141618
£ b
illi
on
p.a
.
Today Average year
2040-2060s Averageyear
Today Extreme year
2040-2060s Extremeyear
Summer 2007
Extent of flooding – after 0.4m sea level rise
Coastlines at the front line
Hierarchy of choices for adaptation
Can site/properties be located outside the floodplain?
Can properties be located in the lowest flood risk areas?
Can occupied areas be raised above flood heights?
Are flood defences feasible/ cost effective?
Identify relevant property resilience options and examine alternative flood alleviation measures.
If not…
If not…
If not…
If not…
Managing risk
• Actions to prevent further climate change• Actions to protect us from inevitable climate change– community and regional planning – development planning– building design– product design– institutional behaviours– individual behaviours
Customers’ needs – personal lines
• Two thirds of people say preventing climate change is their responsibility• Around 6 out of 10 people say protecting the UK from climate change is their responsibility• Around 4 out of 10 customers say they want climate-friendly products
An industry initiative
• Lead in risk analysis – and share our research
•Inform public policy making
•Support climate awareness amongst our customers
• Incorporate climate change into our investment strategies
•Reduce the environmental impact of our business
•Report and be accountable
Reducing the risk for tomorrow