Climate change will alter customer needs and expectations, both consumer and business. Government and business need to respond.

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

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) 67% 67% 59% (35%) Windstorms (23%) 26% 20% 24% Subsidence (8%) 53% 53% 43% (21%) Heatwaves (27%) 32% 23% 26% (12%) Flooding (16%) Most active region Most ‘at risk’ region Average UK Measures against:

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 %

11. New market opportunities £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 £450m-£1.3bn p.a. in industrial renewables