TheImplicationsofClimateChangefortheInsuranceIndustry.docVIP

D. Crichton  PAGE 12 ? Copyright David Crichton, May, 2002. The Implications of Climate Change for the Insurance Industry Wilton Park Conference, “Climate Change, What can be done?” 15th May, 2002. Professor David Crichton Affiliations: Benfield Greig Hazard Research Centre, University College, London, Middlesex University Flood Hazard Research Centre, London, and University of Dundee, Scotland. Chartered Insurance Practitioner, Fellow of the Chartered Insurance Institute. Abstract Climate change will have direct impacts on the global insurance industry in terms of increasing frequency and severity of natural disasters. It will also have indirect effects, not only those arising from government actions to mitigate climate change, but also from likely increases in civil unrest and terrorism caused by poverty, famine, and water shortages. Climate change will require society to adapt, and during this time, it will be more vulnerable to “sideswipes” from such events as volcanic eruptions and earthquakes. In many cases, insurers will be in the “front line” in dealing with the aftermath of such events. Some insurers are beginning to take action, both to mitigate climate change and to encourage adaptation to its effects. Closer partnerships are needed between insurers and government to respond to these challenges, but as yet many remain to be convinced. The author The author has many years’ experience as a senior manager in the insurance industry, dealing with property and casualty insurance underwriting for one of the biggest global insurers. Three years ago, he set up as an independent consultant, and has been advising insurance companies, governments and universities around the world on strategies to deal with climate change. He has often appeared on radio and TV, and has addressed conferences in four continents. He is a member of several Government expert committees and boards in England and Scotland. He is also a member of the UK Advisory Committee on