PRESS Crime: (202) 628-3622 BACKGROUNDER 1275167 NW - Sui1t890 - T0: Media Interested in Global Climate Issues FROM: Frank Maisano, Global Climate Coalition, 202628-3622 RE: Insurance Study on global warming impact DATE: April 27, 1999 An article appeared Sunday concerning a study fi'om the American Insurance Association. The study suggests that global warming actually poses little threat to insurance companies, Senior research manager David Unnewehr conducted the study for AIA, a trade group that represean more than 375 property~casualty insurers. some have claimed that weather disasters brought on by rising temperatures will banlo'upt insurers, but the AIA contradicts those claims. I wanted to be sure that this information was brought to your attention. I hope you find this interesting. For more information or any concerns about climate change issues, please feel free to contact me, (202) 628- 3 622, eWuu (R) rilubrl Manning Poses Insurers Risk htip/stilynews yrshon mviusurmeeglobalwammg 2 Yer-loomewso Home Full Coveraqe Top Stones lrE--|llsmess Tech 1 Lil/grid Local Entertainment Sports Sci Sunday April 25 4:13 PM ET Global Warming Poses Insurers Little Risk By Patricia Vowtnkel NEW YORK (Reuters) - Global warming may melt the ice caps but it will not sink the us. insumnce industry. Politicians and other activists have been trying to turn up the horn on insurers, warning that the industry faces devastating losses ifit does not take more steps to reduce the global warming threat. New York in February held a hearing to discuss the threat to the insurance industry and to (tune it to play is greater role in efforts to tackle the problem. A warmer global climate would melt the ice caps, raising sea levels, and would disturb weather patterns. causing droughts, severe storms, tornadoes, hurricanes and blizzards. US government scientism Thursday said carbon dioxide emissions could heat up the Earth by an average or 3 degrees Fahrenheit (2 degrees Celsius) over the next century. But fears about the threat to the US insurance industry are overblown, according to David Unnewehr, senior research manager for the American Insurance Association, a trade group that represents more than 375 property-casualty insurers. That is because only about 20 percent of the industry's nearly $300 billion in annual business is afiected by weather, Unnewehr said in a report released last week. "Climate change does not pose a severe threat to the us. property--casualty insurance industry," Unnewehr said in a statement, "About one-filth of the industry's business is affected by weather and the industry is diverse and resilient enough to cope with any change in loss experience," he said For insurers, the biggest weather threat comes from hurricanes, which have the potential to cause tens of billions of dollars in losses. But Unnewehr said scientific research showed little evidence that global warming would increase the noquency and severity of hurricanes. "Much of the research seems to indicate that global warming would not increase the frequency of hurricanes and might even suppress hurricane development," he said in the report In addition, Colorado State Professor William Gray, is noted hurricane forecaster, believes there is little or no between global warming and hurricane development. rrlubll auming Poses Insurers Linle Risk hm; li'dailynews yahoo com/headlin 2 himl lire rcal problem is die tremendous growrh in population, homes, commercial developmem in ihe mosi hurricane-prone regions affix: United Florida and other slates along the Southeast and Gulfcoasls," he iald Meanwhile, global warming could help in lesscn the losses From winter slums and freezing, he sand Over Ihe pasr 10 to ls years, insurers have paid more than $8 billion in ninlcr storm and freeze losscs, he said. Those losses lnclude burst pipes, ice damnung on roofs, collapsed roars due In heavy snow and downed power lines, If global wan'ning did result increased siorrn losses from tomadoes, hailslorrns and other evems, insurers would have ahiliry [0 adjust premiums. he said These adjustments do nol always lake place quickly or easily, he said Bur the solvency of insurance companies is one oflhc responsibiliiles nfstatc regulation. insurers also have some flexibility in deciding where want Io do business, "Th: property-easuolry insurance industry is very rcsillenl and. where necessary, adaprs ro changing less experience," he sald. "Funhennore, the industry is a lcadcr in advocating measures to minimize damage and injury lhal can be caused by weather-relaled events Earlier Starla . 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