Insured losses from windstorms and floods in Britain and typhoons in China could rise significantly if global warming predictions turn out to be correct, according to a study released last week by the Assn. of British Insurers.

The study, “The Financial Risks of Climate Change,” also projects that property coverage throughout the world will become more expensive and difficult to obtain if predictions of rising temperatures are correct.

The inland flood component of insurance premiums in Great Britain could increase by around 21%, assuming a global temperature increase of 4 degrees Celsius, which the study says some scientists believe could occur by 2060. The wind component cost would rise by about 37% under such a scenario, according to the study.

The flood and wind components of premiums in China could rise even higher, to around 48% if predictions of a 4-degree rise come about, the study said.

The study was produced for the London-based ABI by catastrophe modeler AIR Worldwide Corp. and U.K. weather researcher and forecaster Met Office.

The study examines implications of predicted temperature increases of 2, 4 and 6 degrees Celsius worldwide on insured losses from floods and windstorms in the United Kingdom and typhoons in China.

Average annual insured losses from river flooding and flash floods in the United Kingdom could rise 14% to £633 million ($1.04 billion) if the global temperature rises 4 degrees, the study concludes. Average annual windstorm losses would rise 25% to £827 million ($1.36 billion) under that scenario.

The insured cost of extreme, 100-year floods could rise 30% to £5.4 billion ($8.87 billion) under such a temperature increase, according to the study. Extreme windstorms could cause insured losses to rise 14% to £7.3 billion ($11.99 billion), it stated.

In China, average annual insured losses from typhoons could jump 32% to £345 million ($566.4 million) based on a 4-degree rise, according to the study.

“A 2-degree temperature rise may be inevitable, but we can limit further increases,” Nick Starling, ABI's director of general insurance and health, said in a statement. “The clear message to world leaders meeting at the U.N.'s Copenhagen Climate Change Summit in December is that they must reach agreement on ambitious emission reduction targets.”

The study is available online at www.abi.org.