17 Jul '11, 1pm

The Insurance Industry Can’t Afford to Have Their Heads in the Sand on Climate Change - Environmental News Network

The Insurance Industry Can’t Afford to Have Their Heads in the Sand on Climate Change - Environmental News Network

That is beginning to change in the insurance industry. History has shown that insurance companies, whose ranks are filled with legions of sharp-penciled accountants and actuaries, and whose business is based on understanding and managing risk, don’t do too well with their eyes closed or with their heads in the sand. And they only need to look as far as their own checkbooks to see that something very disruptive and damaging is happening. In 2005, in the aftermath of hurricanes Katrina, Rita and Wilma, damages reached $173 billion worldwide. Here in the US, damages from catastrophic losses cost the insurance industry $62 billion that year, up by 50% from the 1990’s. Back in the 50’s that number was only $4 billion. The number of reported natural disasters has been climbing steadily from around 70 in 1975, climbing into the two hundred range in the 80’s, to an average of arou...

Full article: http://www.enn.com/climate/article/42922

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