Insurers have been told to focus on the real risks climate change presents to their business operations and less on the political debate surrounding the issue.
Richard Smith, president of the Vermont Captive Insurance Association said recently at the organization’s annual conference in Burlington.
“Many international insurance and reinsurance organizations have been very vocal about emerging risks such as climate change and the need of insurance markets to respond,”
Smith also said, “Drastic fluctuations in the weather are a reminder that climate change is upon us whether you believe it is a natural occurrence, caused by humans or a little bit of both. Our industry should be focused less on the political debate and more on how we respond to it and mitigate it”.
Climate change is also relevant to the insurance industry for reasons beyond the physical threats it poses, including the likelihood of decreasing investment returns for insurers invested in fossil fuel companies.