Planning for climate change: sustainable insurance Jane Milne Climate Change Leader Association of British Insurers

Adaptation responses needed Habitable housing Flexible commercial buildings Risk based development Reliable transportation Secure energy supplies Safe and secure water supplies Well educated workforce Healthy people Resilient trading partners

Habitable housing

Flexible commercial buildings

Risk based development

Reliable transportation

Secure energy supplies

Safe and secure water supplies

Well educated workforce

Healthy people

Resilient trading partners

Which of these events is most important? (YouGov, August 2007, 2012 respondents) Flooding 85% 16% Drought/water restrictions 57% 32% Heatwaves 40% 27% Increased hay fever 28% 21% Subsidence 26% 8% Windstorms 23% 14%

Which of these events is most important? (YouGov, August 2007, 2012 respondents) Flooding 85% 16% Drought/water restrictions 57% 32% Heatwaves 40% 27% Increased hay fever 28% 21% Subsidence 26% 8% Windstorms 23% 14%

Likely insurance costs

Summer 2007

Extent of flooding – after 0.4m sea level rise

Coastlines at the front line

Hierarchy of choices for adaptation Can site/properties be located outside the floodplain? Can properties be located in the lowest flood risk areas? Can occupied areas be raised above flood heights? Are flood defences feasible/ cost effective? Identify relevant property resilience options and examine alternative flood alleviation measures. If not… If not… If not… If not…

Managing risk Actions to prevent further climate change Actions to protect us from inevitable climate change community and regional planning development planning building design product design institutional behaviours individual behaviours

Actions to prevent further climate change

Actions to protect us from inevitable climate change

community and regional planning

development planning

building design

product design

institutional behaviours

individual behaviours

Customers’ needs – personal lines Two thirds of people say preventing climate change is their responsibility Around 6 out of 10 people say protecting the UK from climate change is their responsibility Around 4 out of 10 customers say they want climate-friendly products

Two thirds of people say preventing climate change is their responsibility

Around 6 out of 10 people say protecting the UK from climate change is their responsibility

Around 4 out of 10 customers say they want climate-friendly products

An industry initiative Lead in risk analysis – and share our research Inform public policy making Support climate awareness amongst our customers Incorporate climate change into our investment strategies Reduce the environmental impact of our business Report and be accountable

Lead in risk analysis – and share our research

Inform public policy making

Support climate awareness amongst our customers

Incorporate climate change into our investment strategies

Reduce the environmental impact of our business

Report and be accountable

Reducing the risk for tomorrow