1. From debate to action:
engaging government, business
and consumers in tackling the
causes and consequences of
climate change
Jane Milne
Association of British Insurers

2. Summer 2007

3. Anticipated insurance losses
Climate change and UK weather damage
18
16
14 Today Average year
12
10
8 2040-2060s Average
6 year
4
£ billion p.a.
2
0 Today Extreme year
2040-2060s Extreme
Storm year
Subsidence Inland flood
Coastal flood

4. 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

5. 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%

6. What are you prepared to do to manage
your risk?
(YouGov, August 2007, 2012 respondents)
Measures against: Average Most ‘at Most active
UK risk’ region region
Flooding (16%) 26% (12%) 23% 32%
Heatwaves (27%) 43% (21%) 53% 53%
Subsidence (8%) 24% 20% 26%
Windstorms (23%) 59% (35%) 67% 67%

7. Who would you trust to give you advice on
protecting your home from bad weather?
(YouGov, August 2007, 2012 respondents)
Government 33% 84%
Environment Agency 61%
Local authorities 39% 64%
Fire and Police Services 57%
Insurers 22% 51%
Mortgage lenders 8%
Water companies 21%
Gas companies 12 %

8. 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

9. Engaging with government
• EU Adaptation Green paper
and UK Adaptation
Framework
• UK Climate Change Bill
• UK Government Spending
Review
• Thames and Humber
strategies
• Housing Green Paper
• Code for Sustainable
Homes

10. Customers’ needs -
commercial
• Only one quarter of SMEs
think climate change will affect
their business…..
…..but two thirds of those which
have suffered a flood said their
insurers helped them deal with it
• 98 of the FTSE100 identify
climate change as a business
threat (80% of FTSE500)

11. New market opportunities
£450m-£1.3bn p.a. in industrial
renewables
£33.5bn carbon trading
market could give rise to
a significant insurance
market, including
guarantees for CDM
delivery
Higher uptake of Household
and SME insurance

12. Communicating climate risks
• People identify with local, recent events that
they can imagine happening to them
• They deal with the ‘here and now’ and act if
everyone else is acting
• They look to sources of authority for advice,
especially in a crisis
• Politicians are nervous about getting too far
ahead of their electorates – and business
cannot ignore customers’ wishes
• Journey together

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

14. www.abi.org.uk/climatechange
www.abi.org.uk/flooding
www.climatewise.org.uk