Dr' Mikael Romn

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Adaptation and Mitigation Measures for Climate
Change
Dr. Mikael Román
in collaboration with Dr. Richard J. T. Klein
Stockholm Environment Institute
mikael.roman_at_sei.se
Presentation at Grand Hotel in Stockholm June 15,
2007
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The Facts

• Climate change is real and unequivocal!

• Non-linear development

• Generating new types of risks (sectors areas)

• The economic debate is over (Stern IPCC)

• Requires new forms of governance

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Challenges for the Insurance Industry

• Changing costumer needs
• Changing patterns of claims
• New and tightening regulation
• A source of reputational risk
• Emphasize potential ongoing negative market
  trends within the sector

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Particular areas of concern

• Property insurances
• Business-interruptions
• Crop losses
• Political risk insurance (civil unrest)
• Litigation against polluters

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New business opportunities

• New risk management products
• New analysis and advisory services
• Participation in adaptation activities
• Increased demands for insurances

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What to do?

• Engage in data collection and research
• Develop new products and services (added value)
• Think new in traditional areas!
• Greater integration with financial services
• Transfer risk to the capital markets
• Consumer information and education
• Seek greater diversification (underwriting)
• Engage in Public-Private Partnerships!

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The Insurance Industry as an Actor for Change

• Effectively bottom-up regulation on a
  competitive basis!
• Uniquely positioned between cause and effect
  (impact)
• Long-standing tradition in risk management and
  product developmentgt critical role for
  adaptation (ex ante)!
• Reaches all sectors of society
• A critical piece in Climate Governance!

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The End
Thank you for your attention!
mikael.roman_at_sei.se