Insurers Call for Attention to Climate Changes

October 28 - Changes in global climate will have devastating effects on South Africa's economy according to ClimateWise, the insurance lobby group that includes several top names in the industry such as Swiss Reinsurance.

Speaking at the United Nations Environment Program in Cape Town last week, the group said that climate changes needed to be averted, and called on developed countries around the world to reduce carbon emission by 40% within a decade.

Insurance companies are facing some of their highest claims in recorded history due to natural disasters triggered by climate changes.

"We need an ambitious, robust and equitable global deal that responds credibly to the scale and urgency of the crisis facing humanity today," said the group.

A December summit in Copenhagen will have global nations adopting far reaching agreements to combat climate changes.

"We want to extend insurance to as broad a part of the population as possible," said the Chief Executive Officer of Alliance Insurance, Andrew Torrance.

"Without adequate action being taken in Copenhagen, property in many parts of the world could become uninsurable."

Torrance serves as Chairman of ClimateWise, which also includes as a member Santam Ltd.

"Economically, the insurance industry can manage the potential risks of climate change down the road," said Torrance. "There is no question of the industry being in danger of collapse as a result of climate change."

In the meantime, South Africa's Minister of Defense, Lindiwe Sisulu has been warned that South Africa faces severe water and air pollution problems if no plans are taken to combat the issue.

According to Sisulu, the Defense Intelligence Division "is well aware of the threats and risks accompanying this phenomenon and is incorporating the study of this topic into its broader research."