Climate change lawsuits ‘may outpace asbestos’
Swiss Re says class action lawsuits related to climate change could develop more rapidly than those for asbestos, and it is monitoring developments closely for their insurance implications.
The reinsurer says in a new report that climate change and the global financial crisis are driving the spread of collective action beyond the US, with a “clear trend” becoming evident throughout the European Union.
Swiss Re says class actions are cost-effective and timely, but there is a downside.
“We are convinced that the insurance industry has an interest in actively participating in the ongoing legislative dialogue in order to explain the potentially adverse consequences of unbalanced collective redress systems,” the company said in a statement.
“In particular, lawmakers should bear in mind the unintended consequences of the US class action system.
“They have contributed to a massive increase in the cost of the US tort system to $US250 billion ($309 billion) annually.
“On the other hand, the broad trend towards the spread of collective action also clearly presents opportunities for insurers, such as an increased demand for liability coverage.”
The reinsurer says in a new report that climate change and the global financial crisis are driving the spread of collective action beyond the US, with a “clear trend” becoming evident throughout the European Union.
Swiss Re says class actions are cost-effective and timely, but there is a downside.
“We are convinced that the insurance industry has an interest in actively participating in the ongoing legislative dialogue in order to explain the potentially adverse consequences of unbalanced collective redress systems,” the company said in a statement.
“In particular, lawmakers should bear in mind the unintended consequences of the US class action system.
“They have contributed to a massive increase in the cost of the US tort system to $US250 billion ($309 billion) annually.
“On the other hand, the broad trend towards the spread of collective action also clearly presents opportunities for insurers, such as an increased demand for liability coverage.”