The insurance industry is making good progress on its climate change commitments but needs to accelerate its efforts, according to the first annual independent review of ClimateWise released today.
The insurance industry is making good progress on its climate change commitments but needs to accelerate its efforts, according to the first annual independent review of ClimateWise released today.
The insurance industry helps customers meet the costs of climate change and protect them against its threats. Annual insurance losses from wind storms could increase by two thirds later in this century, sea levels are already rising at a faster rate than scientists predicted and recent changes have doubled the chances of very hot summers in Europe, such as in 2003 when at least 22,000 people died prematurely.
The University of Cambridge Programme for Industry (CPI) has been working with the insurance sector, on behalf of HRH Prince of Wales, to discuss the role that this sector plays in addressing climate risk. In September 2007 representatives from all parts of the sector, including general insurance, life insurance, insurance brokers, investment managers and re-insurers, launched the ClimateWise Principles.
The review was welcomed by His Royal Highness The Prince of Wales, who launched ClimateWise in September 2007. He said: "Over the next year I hope that new companies will join ClimateWise, and I look forward to help build this initiative into a truly global force for change. This is just the beginning of the process for real change, and I urge signatories to continue their endeavours to embed their response to climate change across their activities."
Since the initiative was launched the number of members has grown from 16 to 41, representing various parts of the industry, including 60% of the general insurance sector. The review assesses their compliance with implementing the six ClimateWise principles into their business operations. The six principles cover risk analysis, public policy, customer awareness, investment strategies, operations and reporting.
Andrew Torrance, CEO of Allianz Insurance and Chairman of ClimateWise said: "ClimateWise is still run by and for the insurance industry, but our strong links with the University of Cambridge Programme for Industry's other work with the private sector will help to ensure that our actions remain relevant to the agenda, ambitious in relation to our peers and joined up in the progress that we make. I have always thought that ClimateWise represents a uniquely refreshing response to climate change and our relationship with the Cambridge Programme for Industry is further evidence of that."
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