Insurers must address climate change or face trouble, big U.K. firm warns
Lloyd’s of London, the world’s oldest insurance market, yesterday warned U.K. insurers that they are in danger of being “swept away” by future global warming-related financial claims. In a report punchily titled “Climate Change, Adapt or Bust,” Lloyd’s encouraged insurers to adjust coverage-calculating strategies to factor in future climate-change scenarios instead of basing them on historical data. Some risks, like flooding in vulnerable coastal areas, are likely enough that the report suggests providers restrict or entirely withdraw coverage in those areas. Swept away, indeed. “If we don’t take action now to understand the changing nature of our planet, [insurers] will face extinction,” said Lloyd’s director Rolf Tolle.