Australian insurers are calling for action to manage climate change risks, and so are their British counterparts. The Association of British Insurers (ABI) says a climate action plan is needed to manage climate change risks so that widespread insurance cover remains readily available.

Launching a report into the impact of climate change on the UK, ABI Head of General Insurance John Parker said insurance “is in the front line of climate change. Managing risk is central to our industry, and insurers must be equipped to analyse the new risks arising from climate change, and to help customers protect against them.”

The report by international expert Andrew Dlugolecki says climate change is leading to changing patterns of claims arising from a greater incidence of extreme weather, and calls for a “partnership approach” between the industry and UK Government.

It also notes a significant increase in the number of months of both extreme hot and wet weather during the 1990s, with 34 months of extreme hot weather compared to a previous average of just 12 months per decade. The number of winter storms crossing the UK has also doubled in the past 50 years, and weather-related claims on property have doubled between 1998 and 2003. The report predicts that claims could treble if no action is taken.