Brace for bigger losses due to climate change, insurers told

The Association of British Insurers (ABI) is urging the industry to prepare for a higher number of costly wind storms and increased insurance losses due to the impact of climate change.

 

New analysis conducted by AIR Worldwide for the ABI shows that temperature increases of just a small number of degrees are likely to lead to insurance losses for high winds, which could be 11%, 23% or even 25% higher nationwide.

 

The ABI says that the temperature changes analysed fall within the long-term projections of what climate change experts expect to happen.

 

According to the analysis, the increased losses are not spread evenly across the country. However, they are likely to be concentrated in Northern Ireland, northern England and the Midlands, with southern England potentially seeing decreasing losses from storms.

 

 

“Severe storms result in claims costing billions of pounds. The likelihood of these claims increasing in the future is something the insurance industry, and society, need to start preparing for now,” said Matt Cullen, head of strategy at the ABI.

“Planners and builders should be aware of the need for more wind-resistant construction in specific areas of the country if claims are to be kept to a minimum and residents spared the distress and expense of higher levels of wind damage,” Cullen added.


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