F&C asset management warning on climate impact

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F&C asset management warning on climate impact

Thu 1st Jun 2006

F&C asset management has warned that the climate can impact for the world's leading insurance company.

F&C asset management says that while general insurers have been most obviously affected, extreme weather events could also see property and life insurance companies facing significant risks to their business model.

A number of key trends have been identified by F&C asset management which it believes pose a threat to the insurance sector as a whole.

The key trends include the fact that extreme weather conditions are becoming more common so the past is no longer an accurate predictor for the future as a result F&C has written to leading insurers to inquire about their strategy for asset management.

Alain Grisay, chief executive officer of F&C, said: "If anyone had any doubts in the past about whether climate change was real, the rapidly escalating costs of the past few years have dispelled them. This poses a direct and obvious challenge to the insurance sector."

Greenpeace claims that there is strong evidence that extreme weather events are increasing because of climate change whether or not this is the case F&C asset management has made clear the issue is a concern for the insurance sector.

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