Insurers react to Greenhouse changes

Forest and Bird, Issue 268, 1 May 1993, Page 7

Insurers react to Greenhouse changes

WHILE GOVERNMENTS may be tardy in facing up to the serious environmental and economic problems posed by climate change, the reality of global warming and the associated disruptions in weather patterns are being increasingly accepted by the insurance industry. Insurers are finding that historical weather records are no longer an acceptable way of assessing risk and setting premiums; the future may no longer be like the past. Lloyds insurance brokers report that insurers are increasingly pulling out of disaster-prone areas or else sharply increasing premiums.

Global warming means much more than an increase in the average temperature of the atmosphere. It means more storms, more flooding and more drought in areas which have been relatively free of these phenomena. Meanwhile the International Negotiating Convention for the Climate Change Treaty, which has made little progress in the last two years, was unable to meet as scheduled in New York last March. Delegates were unable to land in New York as airports were closed due to the worst winter storm this century. Source: New Scientist