Climate change warning on rain and wind costs to insurers
The Association of British Insurers (ABI) will publish a climate change report claiming insurance premiums will rise, the Telegraph reports.
The reports will says that a four degree rise in global temperatures could result in the cost of extreme inland floods – those expected to hit the UK once every 100 years – rising by 30% to £5.4bn.
The cost of once-in-a- century windstorms will rise 14% to £7.3bn.
Need to hold more capital
Andrew Torrance, chairman of insurer lobby group ClimateWise, and chief executive of Allianz in the UK, said: "The climate models strongly suggest that we are going to see more frequent and more extreme weather events,
"This will increase the level of weather related claims paid by insurers generally and bring greater volatility to claims levels. This means that insurers will need to hold more capital."
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