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From debate to action SHIFT07 Oct 07
This document discusses the risks of climate change and outlines steps for engaging stakeholders to address it. It finds that insurance losses from extreme weather will rise significantly by 2040-2060 without action. Adaptation is needed across housing, infrastructure, and workforce training. Surveys show people most concerned with flooding and support measures to manage risk. Insurers are well-placed to advise on protection and new climate-friendly products. The document calls for insurers to lead risk analysis, inform policymaking, support public awareness, and reduce their own environmental impact to help tackle climate change.
From debate to action SHIFT07 Oct 07
- 1. From debate toaction: engaging government, business and consumers in tackling the causes and consequences of climate change Jane Milne Association of British Insurers
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- 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 theseevents 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 youprepared 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 youtrust 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-£1.3bnp.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
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