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REPORT: Insurance Industry Remains Ill-Prepared for Climate Change Costs

02 Sep 2011  |   Emma Brown

Tags: Climate Change

Despite a broad acknowledgment by the industry that it poses significant challenges to their business model, only 1 in 8 insurers have formal plans in place to manage risk associated with climate change, a recent study by Ceres, a coalition of public interest groups, investors and environmental groups, found.

Of the 88 insurers in six states that the study evaluated only 11 had formal plans in place.  Yet, insurance groups in general agree that climate change is a problem that holds significant consequences for their businesses.  "Even those insurers with no formal climate policy, no climate risk management structure and a stated belief that the company is not vulnerable to the effects of climate change still name perils that may be affected by climate change 20 percent of the time," the Ceres report noted.

The report comes in the aftermath of Hurricane Irene, which is the 10th billion-dollar weather event in 2011.



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