Insurers must take action today to manage climate change in years to come, according to a report published by the Association of British Insurers. Taking steps to mitigate climate change risks can help ensure that widespread insurance coverage remains readily available.

"Managing the impacts of climate change is a major challenge for society; we already live with its effects everyday," said John Parker, the ABI's head of general insurance. "Insurance is in the front line of climate change. Managing risk is central to our industry, and insurers must be equipped to analyze the new risks arising from climate change, and to help customers protect against them."

In A Changing Climate for Insurance, Andrew Dlugolecki examines the practical implications of climate change for the insurance industry and its customers. Dlugolecki, a chartered insurer with a PhD in Economics, highlights the impact that climate change already is having on the insurance industry, notably in changing patterns of claims arising from a greater incidence of extreme weather. Globally, economic losses due to natural catastrophes have increased seven-fold in the last 40 years, while insured losses have increased 14-fold, he noted. The 1990s were the warmest decade globally since records began, and 1998, 2002, and 2003 were the three warmest years.