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Climate change 'would turn up the heat' on home insurance
05/11/09
Edited by Andy Jowett. Predicted increases in temperatures caused by global climate change would significantly increase the cost of flooding and windstorm damage in the UK, making it harder and more expensive for people to insure residential property, a new report has claimed.
The Financial Risks of Climate Change was produced for the Association of British Insurers (ABI) by climate risk modelling specialist AIR Worldwide and the Met Office.
It predicts that a rise of four degrees C in global temperatures, which could occur as soon as 2060, would increase the average annual insured losses from river and flash flooding by 14 per cent to £633 million.
The same increase would see losses linked to windstorm damage rise by 25 per cent from current levels to £827 million a year.
ABI director of general insurance and health Nick Starling said: "These findings have serious implications for insurers, householders, businesses and governments.
"The continued widespread availability of property insurance in the future depends on taking action now to manage the threats of climate change."
According to the ABI, around one in ten UK households currently make a claim for damage to their residential property or its contents.
