Climate change was a hot topic at the Insurance Council of Australia (ICA) annual forum in Sydney on Friday.

ICA President and IAG COO Andy Cornish raised the issue in his opening address, saying: “I think we can use the words climate change now.”

Insurers have responded admirably to this summer’s catastrophes, he says, but there is “more to this than just responding in the short term”.

He referred to Bank of England Governor Mark Carney’s groundbreaking speech on the issue last year, and warned Australia is far more exposed to the impacts than the UK.

Yet the Australian insurance industry “has not been very vocal”.

“The risks are not easing,” Mr Cornish said.

Governments, business and the community must work together and invest in appropriate mitigation, rather than spending “small fortunes” on disaster recovery.

A seminar entitled Climate Change: What does managing this risk involve for general insurance in Australia? took place later in the forum, but was not open to the media.