Insurers need to consider new liability exposures such as directors' and officers' (D&O) claims brought on by climate change, according to a new report from the ABI.
The report warned of the possibility that directors could be held responsible for the high emissions that lead to global warming, creating more demand for insurance.
ABI head of household Jane Milne said: "We are looking at what the impacts are for insurers and their customers and what it is the industry needs to do to prepare itself.
"On property we are already seeing the effects. Claims are going up. But there are also some liability issues. For example directors could be held responsible for the effects of pollution."
The report urged the industry to look at the potential impact of global warming now rather than face a situation in two or three decades where it will be turning away risks as too dangerous.
The report also looked at the investment opportunities global warming could bring, as well as effects on motor, travel, construction and employers' liability.
To read the full report click here .