Coastal flood losses to double by 2030
Insurance losses from coastal flooding will double by 2030 unless an adaptation strategy is put in place, according to a report by Lloyd’s and Risk Management Solutions (RMS).
The Coastal Communities and Climate Change report says an effective adaptation strategy can lower losses for high-risk properties by as much as 70%.
With sea levels projected to rise by at least half a metre this century, the risk of flooding in coastal areas is escalating.
The report says poor land-use policies and urbanisation are exacerbating the problem, and adaptation measures such as flood defences, elevating property and making properties more flood-resilient need to be put in place, particularly in Europe, Asia and the Caribbean.
It says the insurance industry can also play its part by giving policyholders incentives for adaptation such as risk-based pricing.
Lloyd’s CEO Richard Ward says with more than half the world’s population expected to live within 100km of the coast by 2030, the industry needs to address this risk by starting to adapt now.
“The world cannot insure its way out of climate change, but the insurance industry can play a key role in the fight against it by encouraging adaptation, and if this doesn’t happen, insurance will become more expensive and less available,” he said.
The Coastal Communities and Climate Change report says an effective adaptation strategy can lower losses for high-risk properties by as much as 70%.
With sea levels projected to rise by at least half a metre this century, the risk of flooding in coastal areas is escalating.
The report says poor land-use policies and urbanisation are exacerbating the problem, and adaptation measures such as flood defences, elevating property and making properties more flood-resilient need to be put in place, particularly in Europe, Asia and the Caribbean.
It says the insurance industry can also play its part by giving policyholders incentives for adaptation such as risk-based pricing.
Lloyd’s CEO Richard Ward says with more than half the world’s population expected to live within 100km of the coast by 2030, the industry needs to address this risk by starting to adapt now.
“The world cannot insure its way out of climate change, but the insurance industry can play a key role in the fight against it by encouraging adaptation, and if this doesn’t happen, insurance will become more expensive and less available,” he said.