Allianz Warns Climate Change Could Hit Harder than Financial Crisis

November 22, 2010

As the UN climate summit in Cancun approaches, the insurance industry is preparing to present its case to the poiticians, business leaders and scientists, who will be attending.

“As an insurer, we are the frontline industry to feel the heat of a changing climate,” explained Allianz board member Joachim Faber. He also noted that in “our global industry insurance business alone, 40 percent of damages are due to storms and floods. Also, for our asset management entities, we have to watch rising temperatures. Governmental climate policies affect the value of companies and hence influence our investment decisions.”

As a result Allianz, along with other re/insurers, are backing business leaders to ask “governments and policymakers to deliver significant progress in CO2 reduction.

Allianz noted that this appeal “is repeated annually, based on the lack of progress of both the world’s major industrial powers and the emerging countries in the race against global warming.”

“Exactly 259 investors signed the statement, who together represent combined assets under management worth over 15 trillion US dollars. This figure is equivalent to the annual GDP of the United States, or to more than one-quarter of the world’s total market capitalization.”

Armin Sandhoevel, CEO of Allianz Climate Solutions, added: “What is needed are binding worldwide targets for carbon emissions. To reduce CO2 emissions governments have to provide clear and predictable climate policies for the private sector to become active. Otherwise we’ll inevitably see devastating impacts on the environment and society that will cause enormous costs for the global economy in the long run. Politicians need to take action, before it’s too late.

Source: Allianz

Latest Comments

  • November 23, 2010 at 8:24 am
    No Climate Change says:
    Good luck Allianz in getting China & India to sign onto reducing CO2. They are all about developing more energy for their growing economies. China has been building coal fir... read more
  • November 22, 2010 at 6:36 am
    ComradeAnon says:
    Whats this? A large multinational company with a plan for dealing with climate change? Wonder how many Fortune 500 companies currently have planning inplace for climate change... read more
  • November 22, 2010 at 4:19 am
    Whoa, Chilly says:
    Don't touch their junk
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