The UK Government has highlighted a need for further talks with the insurance industry on climate change, saying it’s a vital key to tackling the problem.

At a meeting in London last week of ClimateWise – a group of insurers working together to respond to climate change – representatives spoke about the need to open the lines of communication between the government and insurers.

UK Foreign Secretary William Hague told the meeting the insurance industry “already gets climate change”, which poses a huge risk to not only the environment but also the economy.

“Most businesses realise that inaction is not an option,” he said.

Allianz Insurance CEO Andrew Torrance told the meeting intergovernmental negotiations need to deliver an effective global treaty, which minimises the risks of exceeding a two-degree rise in global temperatures.

“We look forward to working more closely with the UK Government and governments around the world to achieve this,” he told the meeting.

Willis Re Global Analytics CEO Rowan Douglas also says insurance and reinsurance industries have a critical role to play in helping business, governments and society to “mitigate and adapt” to the risks associated with more frequent and severe global climate events.

“We will continue to work with policymakers to develop public-private partnerships and solutions that help society share the physical and financial risks of a more certain climate,” he said.