Climate change: adapt or bust

As part of Lloyd’s ‘360 Risk Project’, which aims to generate debate on key insurance industry issues, this report urges insurers to face up to the growing threat of climate change. It discusses, in simple terms the science of climate change and outlines specific steps which the insurance industry may need to take to prepare for the increasing volatility of the climate in future years.Key findings include:the insurance industry must do more now to understand and actively manage climate change riskrecent events have shown capital and pricing models to be wanting. The industry must regularly update and recalibrate models to keep pace with realitywindstorm trends will put particular pressure on businesses and their insurersclimate change means Exposures are changing and new ones emerging - Insurers must regularly review and communicate conditions of coverageinsurers must prepare for the impact of climate change on asset values - underwriting for profit will be keyeffective partnership with business and government will be key to managing risk - the insurance industry must engage now