Insurers need to address climate change: Report

WASHINGTON--U.S. insurers need to do more to deal with the impact of damages caused by climate change, according to a report issued Tuesday by the Allianz Group and the World Wildlife Fund.

The report--"Climate Change and Insurance: An Agenda for Action in the United States"--calls on U.S. insurers to improve understanding of the problem of climate change by, among other things, working with catastrophe modelers and scientists to increase the accuracy of climate change modeling.

The report also urges insurers to work with governments where appropriate "to allow for the adjustment of homeowner insurance rates and flood insurance rates, and to develop appropriate price and risk signals to consumers and businesses moving into high-risk areas. Insurers only exit markets as a last resort; however if governments and regulators do not allow for more pricing flexibility, exiting markets become the last option."

The report also calls for insurers to take a more active approach in influencing land use and planning, and to lobby for improved building codes.

The entire report can be read at www.worldwildlife.org.