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| Insurance to rise with sea levels | |||
| Insurance premiums will rise if no action is taken on climate change, is the message sent out by both the government and the insurance sector following the release last week of a federal parliamentary report on coastal disaster risks in a changing climate. The federal parliamentary report recommends that the Productivity Commission investigate the gaps in insurance coverage for owners of coastal property as erosion, sea level rise and storm surges are set to increase with climate change. The report also recommends that the Commission estimate the value of properties potentially exposed and examine a government mechanism that prohibits the continued occupation of land or future building development on property at serious risk of sea level rise. Financial Services Minister, Mr Chris Bowen, told Parliament last week that insurance premiums would increase if no action was taken. The Insurance Council of Australia (ICA), which represents general insurers, estimates that the value of property in Australia, exposed to the risks from rising sea levels and increased storm damage, ranges from A$50 billion (US$44.6 billion) to A$150 billion. The council's general manager for policy, risk and disaster planning, Karl Sullivan, said that: "Ensuring that the community, through individuals and government, take appropriate steps to limit or adapt their financial exposure to the risks of coastal inundation is critical," he said. "If risks are not mitigated, the cost of insuring these risks may increase." He also says that while it is possible to buy cover based on basic requirements everywhere in Australia. However, he adds that many policies - regardless of the area where a person lives - already limit claims involving landslip, erosion and salt water perils. |
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| Ins Communications Pte Ltd · 69 Amoy Street, Singapore 069 888 Tel: (65) 6224 5583 · Fax: (65) 6224 1091 http://www.asiainsurancereview.com/pages/e-weekly.asp?country=4 Published: 11/27/2009 8:11:54 AM © 2009 All rights reserved |
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