Insurers feel the heat of global warmingby Dara Kam | September 27th, 2007
Chief Financial Officer Alex Sink co-authored a Washington Post op-ed piece today outlining global warming’s effect on the insurance industry.
With Montana state auditor John Morrison, Sink cautioned federal lawmakers to do something to address climate change because it is threatening the industry’s survival.
“Insurance as we know it is threatened by a perfect storm of rising weather losses, rising global temperatures and more Americans living in harm’s way,” the op-ed quotes Andrew Logan, insurance director of the Ceres Investor coalition that represents $4 trillion in market capital.
“Federal reluctance to commit to international agreements on climate change, or otherwise cap total carbon emissions, appears to be driven by influential businesses that fear the limitations will hurt their bottom lines,” wrote Sink and Morrison, who both serve on the Climate Change Task Force of the National Association of Insurance Commissioners.
“But the risk perceived by the insurance industry -the world’s largest economic sector – may shift that political balance. At the least, it should tell us something.”