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Climate Change and the Global Insurance Industry

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Author Info
Michael Hawker () (Insurance Australia Group Limited (IAG), Level 25, 388 George Street, Sydney, NSW 2000, Australia.)
Abstract

Weather and climate are “core business” for the insurance industry. Many extreme weather events such as cyclones, hailstorms, bushfires and floods are projected to increase in either intensity or frequency under climate change. A changing, less predictable climate has the potential to reduce the insurance industry's capacity to calculate, price and spread this weather-related risk. However, it is important to understand the long term opportunities as well as risks associated with climate change. IAG is committed to undertaking further research to increase the scientific understanding of the impacts of climate change, to identify ways to reduce the impact that climate change is expected to have on society and to identify insurance-based incentives for a reduction in future greenhouse gas emissions. Climate change presents a strong case for the need for business, governments and community groups to work together to find sustainable solutions to this critical challenge. The Geneva Papers (2007) 32, 22–28. doi:10.1057/palgrave.gpp.2510112

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Article provided by Palgrave Macmillan Journals in its journal The Geneva Papers on Risk and Insurance Issues and Practice.

Volume (Year): 32 (2007)
Issue (Month): 1 (January)
Pages: 22-28
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Handle: RePEc:pal:gpprii:v:32:y:2007:i:1:p:22-28

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