ZURICH, Switzerland (ENS) - Climate change is causing natural disasters that the financial services industry must address, a group of the world's biggest banks, insurers and re-insurers warned Monday. They estimated the cost of financial losses from events such as this summer's devastating floods in central Europe at $150 billion over the next 10 years.
"Climate Change and the Financial Services Industry," a report supported by 295 banks and insurance and investment companies, was launched today at the Swiss Re Greenhouse Gas conference in Zurich.
In Germany this August, several cities were submerged by the floods as Alpine snowcaps melted. The city of Dresden experienced extensive damage.
"Climate Change and the Financial Services Industry," a report supported by 295 banks and insurance and investment companies, was launched today at the Swiss Re Greenhouse Gas conference in Zurich.
In Germany this August, several cities were submerged by the floods as Alpine snowcaps melted. The city of Dresden experienced extensive damage.
A partnership between the United Nations Environment Programme (UNEP) and the financial institutions, known as UNEP Finance Initiatives commissioned the report. It shows that losses as a result of natural disasters appear to be doubling every decade and have reached $1 trillion in the past 15 years.
"The increasing frequency of severe climatic events, threatening the social stability or coupled with significant social costs, has the potential to stress insurers, reinsurers and banks to the point of impaired viability or even insolvency," the report concludes.
"The increasing frequency of severe climatic events, threatening the social stability or coupled with significant social costs, has the potential to stress insurers, reinsurers and banks to the point of impaired viability or even insolvency," the report concludes.