Leaders from seven leading economies have cited insurance as part of a pledge to build resilience in countries vulnerable to climate change risk.

The G7 aims by 2020 to increase to 400 million the number of people in developing countries with access to insurance against climate change-related disasters.

The drive includes developing early warning systems, using the experience of African and Caribbean disaster arrangements.

Munich Re has welcomed the plan to increase insurance, hailing it as an important milestone on the way to climate change adaptation.

The reinsurer gave advice on climate risk insurance in preparation for the G7 summit in Germany earlier this month. The leaders of the US, UK, Germany, France, Canada, Italy and Japan also reaffirmed a commitment to reduce greenhouse gas emissions.

The Munich Re statement says industrialised countries must move to mitigate climate change risk.