The insurance industry has a role to play even as natural disasters grow in number and magnitude, says Munich Re’s Head of Geo Risks Research/Environmental Management, Peter Hoeppe.

Reflecting a now-popular opinion, Professor Hoeppe says insurers should include climate change in their risk modeling and be more proactive by getting involved in research on climate change. 

He says carbon dioxide levels are reaching record heights, “particularly since 2005 is the warmest year since records began in 1861”.

“We have seen the average number of natural catastrophes increase from two a year to seven, and all are driven by weather-related events.”

Professor Hoeppe says natural disasters caused by weather-related disasters like flooding, drought and windstorms have all increased since the 1950s; but earthquakes/tsunamis and volcanic eruptions have showed no change in incidence since the 1950s.

“The intensity of hurricanes and typhoons in the Pacific has risen by about 50% in the last 30 years already,” he said. “There is no disputing that climate change has already started and there are no sceptics any more.

“If carbon dioxide emissions stopped tomorrow, climate change would still go on for another 30 years.

“Insured losses for this year beat the all-time record the previous year at $US60 billion. As natural disasters grow in number and magnitude the loss potentials for the insurance industry is huge,” he said.