ABI warns on storm insurance costs

by Brian Turner

Story link: ABI warns on storm insurance costs

According to the Association of British Insurers, the worldwide costs related to major storms could increase by 66 percent by the year 2080 unless something is done to reduce or reverse global warming.

If steps are not taken, the yearly worldwide costs of cleaning up after storms could reach £15 billion ($27 billion), the Association said in a Financial Risks of Climate Change report.

The report contends that the cost of both US hurricanes and Japanese typhoons could rise by as much as three-quarters, to £82 million and £19 million per year respectively, while European storm-related costs also could rise to £82 million in a severe storm year.

Besides taking steps to reduce global warming, the report says that governments should also encourage investment in buildings that are more weather-resistant and in more effective flood management.

The report concluded that governments could reduce the cost of storms in the future by taking appropriate measures in the present.