Global warming could trigger “tipping points” which result in the world’s diverse regions and ecosystems suffering devastating environmental, social and economic changes, according to a new report by insurer Allianz and the World Wildlife Fund (WWF).

The jointly published report says the warming of global temperatures is approaching a “dangerous and irreversible level” and could cost the world hundreds of billions of dollars.

It explores impacts of the “tipping points” such as economic consequences and implications for the insurance sector, and says many regions are close to their tipping points.

The report says action needs to be taken immediately, to prevent a rising sea level on the US east coast, the shift to an arid climate in California, disturbances of the Indian summer monsoon in India and Nepal, or the dieback of the Amazon rainforest due to increasing drought.

Allianz Reinsurance CEO Clemens von Weichs says Allianz must prepare clients for these scenarios while there is time.

“Setting premiums sustainably and appropriate to the risk is of vital interest to everyone involved because this is the only way to ensure that coverage solutions will continue to exist,” he said.

Mr von Weichs says Allianz intends to address climate change through early dialogue with clients that will allow it to point out countermeasures and work together to develop specific coverage concepts, whether for existing assets or for future climate-compatible projects like alternative energy and water supply concepts, dyke construction or protection against failed harvests.