Small changes in the weather such as slight temperature increases can have a dramatic effect on the community, similar to that of natural disasters. 

A new report by Swiss Re titled “Opportunities and risks of climate change” tells how insurers paid an extra $1.5 billion for damage to buildings and crops in Britain when temperatures reached three degrees above average. The power industry lost a similar amount because of reduced heating requirements.

The report also offers some comfort for insurers. Swiss Re chief risk officer Bruno Porro said increased weather risks will prompt people to change their behaviour. The industry will have a major role to play in assisting the community to address risks now, so it can avoid them in the future.