Higher risk for insurers through climate change

Scientists have suggested that warmer conditions will lead to more intense drought, floods, cyclones and rising sea level and the insurance industry says the number of weather-related disasters has already risen dramatically over the past several decades.

As a growing human population, living in cities we are adding to the risks of increasingly unstable weather. Weather forecasts are also becoming more unpredictable, which makes it harder to reinsurers to assess risk.

Changes in places such as Australia, through rising coastal urbanization and a rapidly expanding mining sector means a growing risk of weather-related insurance losses. Governments have said the floods since last month are expected to be the nation’s costliest natural disaster estimated up to $20billion.

Overall losses from weather related issues rose by a factor of 3 in the period 1980-2009, taking inflation into consideration, while insured losses from such events increased by a factor of about 4 during the same period. A total insured loss from natural disaster in 2010 was $37 billion.

With catastrophic weather conditions becoming more damaging, frequent and costly, we should all try to reduce our impact on the environment, as London based office supplies company does in terms of offering green products, using alternative fuels in vehicles, and promoting environmental consultancy.

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