Reinsurance Association of America said today it formally adopted a climate change policy Tuesday at its fall board meeting recognizing climate impacts on the world's social and economic risks.
In doing so, the RAA said it is the first insurance industry organization to have such a policy in force.
“It is incumbent on our industry to acknowledge the changing climate and the risks it poses to the business community and to ensure that policymakers consider measures for adapting to, and mitigating, the potentially adverse impacts of climate change,” said Frank Nutter, president of the RAA.
In its policy, the RAA commits to:
o Promoting awareness and understanding of the risks associated with climate change;
o Working to identify ways the insurance sector can meaningfully utilize its risk management expertise to help society tackle the impacts of climate change;
o Encouraging efforts to mitigate human-induced greenhouse gases and implementing risk reduction initiatives to adapt to climate change;
o Encouraging members to assess the impact of their business operations, to analyze their contribution to climate change, and to evaluate emissions reduction measures.
The Washington, D.C.-based RAA's spokesperson, Barbara Carroll, told National Underwriter the organization will be releasing more information in the future, such as details about how RAA plans to carry out the initiative.
Insurers and reinsurers are becoming more concerned with the implications of climate change. Just this month at the Reinsurance Rendez-Vous in Monte Carlo, Lloyd's held a press conference advising the industry to take the environmental threat seriously (National Underwriter, Sept. 15, p. 7).
Lloyd's Chief Executive Officer Richard Ward warned that rising sea levels and changing weather patterns could result in a doubling of losses for properties in coastal areas by 2030 unless measures are taken now.
A copy of the RAA's climate change policy is online at www.reinsurance.org.
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