| Insurers highlight future coastal flooding threats
The report was launched at the annual reinsurance gathering, Rendez-vous de Septembre, in Monte Carlo, Monaco. Speaking at the launch, Lloyd’s Chief Executive, Dr Richard Ward, said that the threat of rising sea levels is the most important consequence of climate change facing the planet — and one of the most certain. He said there is already evidence of a rapid rise in sea levels in many areas of the planet and that some of the world’s most famous cities are under threat. “Over a timescale of just decades, rising sea levels will pose a serious threat to coastal communities in low-lying areas,” Ward told senior managers from some of the world’s leading reinsurers. “So, who will be affected? The Stern Review on the economics of climate change remarks that under presently envisaged global climate change, 200 million people may be directly affected by sea level rise, with several major coastal cities including London, Tokyo, Shanghai, Hong Kong, Mumbai, Cairo, Kolkata, Karachi, Buenos Aires, St Petersburg and New York particularly seriously affected.” He said that measures needed to be taken to lessen the impact of global warming and to implement effective building and development-planning strategies to decrease the numbers of properties built in high risk areas. Without such action, the availability and affordability of insurance will be reduced as insurers examine the risks associated with the coastal regions more stringently. He said insurers can help encourage a new approach to climate change by working with government and policyholders, and by giving incentives to those working on adaptation through reducing the costs of coverage. “Mitigation through reductions in greenhouse gases is the only way to solve the global problem of climate change in the long term,” said Ward. “There has been, and continues to be, much debate at the international and regional level about how we can achieve that and what infrastructure we need to deliver it. However, in the meantime, we must not ignore the imperative to adapt for the future by starting to make changes now.” He added that the consequences for coastal communities of rising sea levels could be devastating for property owners and insurers alike. Ward called for swift action to tackle the menace of coastal flooding, adding that society, business and the insurance industry must remain flexible in response to the threat.
•Date: 10th Sept 2008• Region: World •Type: Article •Topic: BC general
|
