Isra-Mart srl:Environment minister urges British insurers to build climate-risk services

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Isra-Mart srl news:

British insurers should "steal a march on their rivals" by developing new products to help firms adapt to the extreme weather-related risks caused by climate change, environment minister Lord Henley will tell a United Nations conference tomorrow.

Henley is scheduled to address a meeting organised by the UN Environment Programme (UNEP), where he is expected to urge insurance firms to develop new products and draw on British scientific research to help businesses better manage the risks posed by climate change, such as flooding and droughts.

"The UK financial services sector can steal a march on its rivals by developing and selling new weather and climate-related products," he will say. "And in the same way that we have established London as the global centre for carbon trading, investment portfolios that factor in climate resilience are also likely to be more attractive and bring greater returns."

UNEP last month warned that the insurance sector is facing increasing losses because of more frequent incidences of extreme weather events associated with climate change. The UN body called for greater collaboration between scientists, insurers and policy-makers to ensure climate information is made available to all relevant parties.

The Department for Environment, Food and Rural Affairs (DEFRA) and the Association of British Insurers (ABI) have already signed an unprecedented agreement to ensure properties at risk of flooding have access to insurance.

However, Lord Henley will tomorrow urge insurers to play a more proactive role in managing climate risks and investing in adaptation measures.

"By using the latest scientific evidence to help people and businesses manage the risks posed by climate change, insurers play a critical role in increasing the UK economy's resilience," he will argue. "Government will support the insurance industry by continuing to provide cutting-edge scientific evidence on the projected changes to the UK climate, and support on how to prepare for the consequences."