Swiss Re May Introduce Climate Breakdown-Specific Insurance Products

[hatrack]

INSURANCE products linked to climate change may be introduced in Australia. Bruce Thomas, a sustainability expert with reinsurer Swiss Re, told The Age he expected Australia to follow other countries where insurance had taken account of the effects of global warming.

"There are certain amounts of warming that are already built into the global climate system," Mr Thomas said. "The in-built increases in temperature as a result of CO 2 emissions that have already occurred mean that even if we do something dramatic starting today, or even next year, we will still see warming, and therefore likely climate change, during the first half of the 21st century."

Swiss Re joined Westpac, Insurance Australia Group, Origin Energy, BP, Visy and the Australian Conservation Foundation last month in a statement attempting to raise the corporate profile of carbon awareness.

But Mr Thomas said business interest in climate change was not soft or altruistic. Trends in environmental economics, including trading of carbon credits, offered opportunities for the financial services industry to create products and price the new risks.

EDIT

http://www.theage.com.au/news/business/insurers-take-cover-with-global-warming-risks/2006/05/22/1148150186764.html