Following the release of a hard-hitting report into climate change from the respected Intergovernmental Panel on Climate Change (IPCC), the local insurance industry is pushing governments to tackle the issue.

About one-third of the global insurance industry’s claims are now weather-related, and it is hoped the report from more than 2500 scientists in more than 130 nations will galvanise governments to invest more in research.

IAG CEO Mike Hawker told Sunrise Exchange News 19 of the 20 largest insurance events in Australia’s history have been weather-related.

“Globally, five out of the 10 largest-ever insurance losses have occurred in the last two years,” Mr Hawker said.

He says a warmer climate is expected to increase weather-related incidents and therefore claims, so it makes sense that IAG is focused on doing whatever it can to reduce the risk of climate change.

Mr Hawker says treating climate change seriously makes good business sense, and reducing IAG’s environmental impact also enables it to reduce operating costs.

He says now more than ever it is the time for the industry to liaise with governments on the issue.