NU Online News Service, Dec. 1, 12:19 p.m. EST

Aggregate losses from weather-related natural catastrophes since 1980 now total $1.6 trillion and insured losses are increasing an average of 11 percent per year, Munich Re said in a press report.

As of the end of September, 2010 is gearing up to be the warmest year since records began 130 years ago, according to the report, "Weather Extremes, Climate Change, Cancun 2010," released as the 16th World Climate Summit gets underway in Cancun, Mexico.

Munich Re said in its report that climate change is a fact and is almost entirely made by man. Munich Re said it has been analyzing natural hazards and natural hazard losses for more than 35 years, and has set up a comprehensive natural catastrophe database--currently comprising more than 28,000 events.

According to Munich Re, the number of major weather-related natural catastrophes has tripled since 1980, as has the number of floods. Windstorms have more than doubled in number as well, Munich Re said.

At the December Climate Summit in Cancun, Mexico, Munich Re said, expectations are low that an agreement will be reached on mitigation of carbon. To do this, the United States and China would have to change their stance--which the company said is unlikely.

With climate change in mind, Munich Re said it has devised a number of covers to reduce the risks for investors in renewable energies, thus making such investments feasible.

Munich Re said the spectrum ranges from traditional coverage for industrial facilities to complex solutions, such as coverage against a lack of wind or sunshine and performance guarantee covers for manufacturers in the technology sector that reduce the risks for investors.

The most recent example is a performance guarantee cover concluded in October for concentrator photovoltaic modules produced by U.S. manufacturer SolFocus, the company said.

Munich Re also cited Desertec, a project using solar energy or wind power that will initially focus on the Middle East/North Africa region, using the vast expanses of desert there. Electricity is to be transmitted over long distances using extremely low-loss high-voltage direct current technology (HVDC).

Munich Re said it expects its premium income from these coverages to increase substantially by 2020.

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