Insurance industry continues to demand for protection against disasters relating to climate change
Qatar is currently hosting the United Nations’ COP-18 conference regarding climate change and its impact around the world. Though climate change remains a volatile issue in politics and with many consumers, the insurance industry has long held the position that the matter is not up for debate. Most insurers avoid the topic of climate change but have been preparing for such a phenomenon nonetheless. This is largely due to the major risks associated with the phenomenon, such as the increasing frequency of powerful storms and widespread drought.
Island nations face threat of rising sea levels
The insurance industry’s concerns are echoed by island nations that are facing the very real possibility of being submerged by rising sea levels. These nations are calling for protection against such a disaster, and the insurance industry may be able to provide the kind of protection they are looking for. Growing concerns over rising sea levels are pushing up the demand for a climate-damage insurance program, which would provide island nations, as well as others, with financial aid in the event of a climate change-related disaster.
Alliance of Small Island States seeks coverage for disasters that cannot be controlled
The Alliance of Small Island States, which is comprised of 43 island nations throughout the world, is attending the COP-18 conference in Doha, Qatar. The association has been pushing United Nations officials and those from industrialized countries to put some serious consideration into a climate-damage insurance program. According to Malia Talakai of Nauru, lead negotiator for the organization, island nations simply want protection from disasters that they cannot prevent, mitigate, or control.
Climate change policies currently do not exist
The insurance industry is well attuned to the potential risks associated with climate change, but there are no insurance policies that protect against natural disasters that are specifically associated to climate change. This is partly due to the controversial nature of the phenomenon, but also because of the substantial risk insurers could face if countries decide not to adopt policies that could mitigate the impact of climate change. Though insurers are willing to account for the risks associated with climate change, few are willing to place their financial future in the hands of governments that consider climate change a non-issue.