According to America's Climate Choices, a 2011 report by the National Academies of Science (NAS):
Climate change is occurring, is very likely caused primarily by the emission of greenhouse gases [GHG] from human activities, and poses significant risks for a range of human and natural systems. Emissions continue to increase, which will result in further change and greater risks.Climate change confronts the insurance industry with risks, uncertainties, and opportunities. Among the risks of climate change are those associated with continued warming and sea level rises, more frequent extreme precipitation events (e.g., downpours and blizzards), and ecosystems changes, including those that may affect human health. At the same time, the industry will deal with substantial uncertainties, such as the relationship between climate change and tropical storms and how governments, businesses, and individuals will respond to climate change. Climate change presents the insurance industry with opportunities for new markets for a variety of products and related services, some of which are currently being offered. However, the bulk of market activity is in Europe, primarily from property and casualty insurers. And even among these firms, the offerings and overall market penetration are limited.
The Department of Energy's Lawrence Berkeley Laboratory (LBL) has a website on the implications of climate change for the insurance industry, http://insurance.lbl.gov/, which is the source of much of the information in this report. The Insurance Information Institute also has a website on climate-related issues for the industry.
For more information, including a review of a number of industry and government reports and studies, read the full OLR Report.
