Insurers face 'extreme weather risk'

27 July 2007
The impact extreme weather conditions can have on home insurance customers and companies has been outlined by a new report.

A paper from the Intergovernmental Panel on Climate Change has stated that a hotter, drier environment can result in heavy, more intense rain than might usually be expected.

As a result, severe weather conditions are costing insurers billions, it added.

Vicki Bakshi, associate director at F&C's governance and sustainable investment team, assessed how companies should respond.

"They need to make sure they are getting involved in all the risk reduction activities they can. They should work with customers to help them reduce their future vulnerability," she said.

The environment has been a hot topic over the last year, with many organisations trying to raise climate change awareness.

Earlier this month, former US vice president Al Gore hosted Live Earth - a worldwide series of concerts looking to spread the message of environmentalism.

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