Insurance companies should factor in climate change says Lloyds of London

Trevor Maynard, Head of Lloyd’s Exposure Management explains why climate change is a threat multiplier on BBC Radio 4’s Today Programme.

> Listen again at 2 hours 47 minutes 

Whilst most insurance companies don’t currently factor in Climate Change, Lloyds recommends that they should, saying there is no question the climate is changing and highlighting how weather related losses have risen from annual averages of £50 billion thirty years ago, to £200 billion today.

> Read the full Lloyds report: Catastrophe Modelling and Climate Change


Here are some of the key points from Trevor Maynard’s interview on BBC Radio 4 on 8 May 2014:

“Hurricanes are getting stronger, there’s more moisture in the atmosphere which means greater flooding. We can take those shorter term climate trends into account.”

“If we continue on a ‘business as usual’ carbon trajectory, we are heading for 4 degrees. That’s a horrible scenario by the end of the century. So actually, we don’t have uncertainty, we know what we need to do, we have to de-carbonise in the next twenty to thirty years, otherwise there’s going to be really difficult times ahead.”

“A lot of people ask ‘Did climate change cause this or that event?’ and that’s basically the wrong question. What we’re saying is that climate change is affecting many, many events and making them worse.”

“[for] every degree centigrade rise in sea surface temperature you get ten meters per second added to the hurricane strength and that means bottom line financial impact for insurers.”