The insurance industry will be unable to operate effectively if the current trajectory of climate change proves accurate, Insurance Australia Group (IAG) Executive Jacki Johnson told the Financial Review.
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| Climate change will make the world uninsurable. |
Johnson’s comments come after the UN Environment’s Finance Initiative (UNEP FI) announced a partnership with a group of 16 large, global insurers and reinsurers (of which IAG is included), to develop a new generation of risk assessment tools that enable the risk transfer industry to better understand the impacts of climate change on their business.
She adds that a failure to reduce greenhouse emissions could result in a world that is “pretty much uninsurable”, an outcome that would hit poorer regions hardest.
In Australia, Johnson says a temperature rise of over three degrees would inflict higher levels of extreme weather events such as cyclones and flooding to Queensland, while a rise of more than four degrees would render insurers unable to provide protection in certain areas of the world.
Read the Reinsurance News story - “IAG says climate change could make world ‘uninsurable’: Financial Review.”
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