AIG to insure against losses due to climate change

Wed, 2006-08-23 10:58Kevin Grandia
Kevin Grandia's picture

AIG to insure against losses due to climate change

America Public Media and Fortune are both reporting today that AIG, one of the world's largest insurers, will shortly announce new insurance products aimed at covering losses due to the effects of climate change.

This echos earlier statements made in a report by Marsh , the world's largest insurance broker, last spring:

“Climate change - often referred to as 'global warming' - is one of the most significant emerging risks facing the world today, presenting tremendous challenges to the environment, to the world economy, and to individual businesses.”

Furthing adding to these concerns was the world's oldest insurance company, Lloyd's of London, who, through Director Rolf Tolle, stated:

“Climate change is today's problem not tomorrow's. If we don't take action now to understand the changing nature of our planet we will face extinction.”

This only adds further credence to what the vast majority of climate scientists have been saying for years: climate change is happening and we need start implemeting global solutions. If the oldest and the largest leaders of an industry that arguably employs the most conservative economic risk analysis are on board, how much more of a call-to-action do we need?

Here is a short realplayer audio clip on the announcement.