UK Housing Faces Uninsurability Risk Due to Climate Change
What happened
A report by Inside Track, based on input from senior insurance professionals, warns that climate-driven risks are causing insurers to withdraw coverage for UK homes. The report states that this retreat has begun and will accelerate, leading to increased uninsured losses. Amanda Blanc, Chief Executive Officer of Aviva, previously noted that homes built in the UK already face uninsurability due to rising flood risks. Lord Nicholas Stern commented that risk models have underestimated the danger, leading to mispriced risk.
From insurancejournal.com
Why it matters
Insurers are increasingly passing losses to governments and homeowners as they withdraw coverage for climate risks. This trend suggests that systemic risk is building, potentially making entire regions uninsurable due to climate change.
From insurancejournal.com
Who's involved
- Nicholas SternChair of the Grantham Research Institute at the London School of Economics and Political Science
- Amanda BlancChief Executive Officer of Aviva
- AvivaBritish insurance company facing climate risk challenges
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
The London School of Economics and Political Science might see increased demand and relevance for its climate risk expertise.
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The entities involved
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Nicholas Stern
American film producer
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Amanda Blanc
British businesswoman
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London
capital and largest city of England and the United Kingdom