Finance Choices
The Climate Change Premium
This winter has seen the effects of climate change upon our lives grow ever stronger. On boxing day a tsunami struck with devestating force on South Asia. In the past few days heavy rainfall has caused floods across much of Great Britain.
The insurance industry is bearing the brunt of these events and is placing the risk of their occurence squarly on the shoulders of you, the premium holder. In 2003 Munich Re, a German based company that insures insurers put the combined cost to the industry of global warming related disasters at $60 billion.
Swiss Re, another re-insurer warned last year that the costs of natural disasters, aggravated by global warming, threatened to spiral out of control, forcing the human race into a catastrophe of its own making.
Perhaps even more alarming is that, on average, just 25% of Britons has contents insurance to cover them against such events as flooding and storms. Most buildings insurance plans don't cover any loss of posessions so as much as 6 million homes are at risk. Are you one of them?
So this is serious business. What does it mean to you and your premiums?
The Environment Agency is working with the Association of British Insurers (ABI) to make sure that the insurance industry continues to provide cover for you, even if you live in an area with a risk of flooding. This seems only fair, especially as recent reports suggest that it will be harder to not live in a flood risk area within a decade!
Whilst the Environment Agency has no role in determining insurance cover they are providing the latest information to the ABI so they can assess the real danger of flooding for your property.
They have developed the following document to help answer your questions on what the recent floods can mean to you and your premiums:
Finance Choices Guide
Can you afford to be without contents insurance?
The insurance industry is bearing the brunt of these events and is placing the risk of their occurence squarly on the shoulders of you, the premium holder. In 2003 Munich Re, a German based company that insures insurers put the combined cost to the industry of global warming related disasters at $60 billion.
Swiss Re, another re-insurer warned last year that the costs of natural disasters, aggravated by global warming, threatened to spiral out of control, forcing the human race into a catastrophe of its own making.
Perhaps even more alarming is that, on average, just 25% of Britons has contents insurance to cover them against such events as flooding and storms. Most buildings insurance plans don't cover any loss of posessions so as much as 6 million homes are at risk. Are you one of them?
So this is serious business. What does it mean to you and your premiums?
The Environment Agency is working with the Association of British Insurers (ABI) to make sure that the insurance industry continues to provide cover for you, even if you live in an area with a risk of flooding. This seems only fair, especially as recent reports suggest that it will be harder to not live in a flood risk area within a decade!
Whilst the Environment Agency has no role in determining insurance cover they are providing the latest information to the ABI so they can assess the real danger of flooding for your property.
They have developed the following document to help answer your questions on what the recent floods can mean to you and your premiums:
Finance Choices Guide
Can you afford to be without contents insurance?
Latest figures suggest that 5 million people and 2 million properties live in risk of flooding in the UK. The Environment Agency Website allows you to check your risk by entering your postcode.
If you live in a high risk area then you might find useful our guide to the best providers of contents insurance.
Until next time,
BW
posted by Bruce Wayne at 7:41 PM
The Climate Change Premium
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