The Climate Change and Risk Management: The Role of the Financial Services Sector Think Tank held on 5 December 2012 brought together members representing the financial sector, government and policy makers, climate scientists and academics to discuss the role the financial sector can play in managing and adapting to a more volatile environment and to explore how greater collaboration between the parties can reduce the total cost of adaptation. The increased frequency of major climatic events in recent years, whether related to ongoing climate change or not, have drawn attention to the potential wealth destruction that can result from an insufficient understanding of, planning for and insuring against major climatic events.
1. Development of systems to provide greater availability and improved distribution of information related to climate risks.
2. A cost-benefit analysis of the fire-service levy incorporated into house and business insurance policies and the impact this may have on underinsurance.
3. A review of the government’s role as insurer of last resort and ex-ante guidelines by which insurer of last resort status will be activated.
4. Ongoing reviews of minimum building requirements and specifications for high risk areas to deter concentration of risk.