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4th December 2009
Climate change will affect insurance
The Association of British Insurers (ABI) has warned that climate change will make insurance more expensive and harder to obtain.
They claim that rises in temperatures in the UK looks set to “significantly? increase the cost to insurers of the flood and windstorm damage. The group went on to warn that this increased cost to insurers would feed through into higher premiums for the public, and cause the insurers to be more cautious financially, leading to fall in the availability of cover.
The ABI worked with the Met Office and risk modelling group AIR Worldwide to look at the financial implications for insurers of predicted temperature increases of 2°C, 4°C and 6°C. It found the average cost of losses to insurers from river flooding and flash floods could rise by 14% to £633 a year if global temperatures rose by 4°C, which could happen by as early as by 2060.
Nick Starling, the ABI’s director of general insurance and health, said: “A two-degree temperature rise may be inevitable, but we can limit further increases.
“The clear message to world leaders meeting at the UN’s Copenhagen climate change summit in December is that they must reach agreement on ambitious emission reduction targets.?
Thankfully The Green Insurance Company are here to make it easier than ever before to be green. We’ll continue to offset 100% of the carbon emissions of our customer’s vehicles. So far we’ve offet around 93,000 tonnes of C02 to combat climate change and keep your insurance premiums low!