North American insurers must do more to deal with the effects of climate change, according to a new report co-written by Allianz and the World Wildlife Fund.

The report, “Climate Change and Insurance – An Agenda for Action in the US”, suggests insurers have a double responsibility when it comes to global warming.

It says that as well preparing themselves for negative effects on their businesses, underwriters should help mitigate related risks and encourage a low-carbon economy.

Global warming will affect the US through an increase in extreme weather events. As well as more frequent and powerful hurricanes, residents there can also expect more flooding, drought and forest fires.

The changes are already affecting insurance premiums in high-risk areas. In some cases, insurers are leaving markets completely.

The report makes several recommendations, including a review of government programs that keep insurance premiums artificially low, as this can encourage overdevelopment in high-risk areas.

US insurers should begin incorporating potential climate change effects into their business planning, rather than relying solely on historical data.