Insurers Confirm Growing Risks, Costs of Climate Change

http://www.commondreams.org/headline/2012/03/03-0

Published on Saturday, March 3, 2012 by Common Dreams

As southern Indiana, Kentucky and other midwestern states woke Saturday to devastated communities and a rising death toll, the world again was treated to pictures and video of mother nature's ferocious power and the merciless power of her most precise and terrifying storm, the tornado. Most striking to some is the early arrival of this year's tornado season, which usually begins later in the spring and runs into summer. For climate scientists, who have long predicted longer or more powerful storms and less predictable seasons, the events are an affirmation that offer no comfort.

More striking this week, however, was a little noticed hearing -- just a day before these massively destruction storms -- where the nation's insurance and re-insurance companies came together to recognize the impact that climate change is having on their industry, a direct measure of the financial costs on US taxpayers and private businesses.

[...]

In a press briefing on Thursday, representatives of the nation's top insurance companies, citing a year of history-making natural disasters and $1 billion-plus in damages, took a definitive stance, along with members of the US Senate, to confirm that the costs -- both to taxpayers and private businesses -- from extreme weather events will continue to climb due to the irrefutable march of global warming and climate change.

“From our industry’s perspective, the footprints of climate change are around us and the trend of increasing damage to property and threat to lives is clear,” said Franklin Nutter, president of the Reinsurance Association of America. “We need a national policy related to climate and weather.”

“As a member of the global insurance industry, we have witnessed the increased impact of weather-related events on our industry and around the world,” said Mark Way, head of Swiss Re's sustainability and climate change activities in the Americas. “A warming climate will only add to this trend of increasing losses, which is why action is needed now.”

Cynthia McHale, the insurance program director at Ceres, issued a more unequivocal statement: “Our climate is changing, human activity is helping to drive the change, and the costs of these extreme weather events are going to keep ballooning unless we break through our political paralysis, and bring down emissions that are warming our planet. If we continue on this path, extreme weather is certain to cause more homes and businesses to be uninsurable in the private insurance market, leaving the costs to taxpayers or individuals.”

[...]

..