As well as affecting people and wildlife, climate change could destroy the insurance markets, according to a recent report.
The study by the Chartered Insurance Institute pointed out opportunities for insurance products but also highlighted the risk of insurance market failure.
According to the report, climate change could already be compounding catastrophe losses by two per cent a year, with extreme weather events being the most obvious impacts of climate change.
However, the problems extend beyond simply the weather.
“Social disorder and international tensions could also deteriorate to the point where substantial markets become uninsurable,” claims the report.
“Another potential problem is ‘claims contagion’, when systems cannot cope with the sheer volume of work.”
At the end of this year a global meeting will take place in Copenhagen to agree on a worldwide plan to replace the Kyoto Protocols to tackle climate change.
The UK has already committed to cut carbon emissions by 80 per cent by 2050.
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