Invest in risk management to cope with fiercer hurricanes, says climate expert.
Climate change will probably cause hurricanes to become more intense, triggering a rise in losses to the insurance industry, a climate expert from Swiss Re has warned.
Andreas Spiegel, senior climate change adviser for the reinsurer, said companies would need to invest heavily in risk management to cope with the change.
In the early 1990s, average insurance losses to hurricanes stood at about $10bn (£6.3bn) a year, but annual losses have now ballooned to more than $30bn, said Spiegel.
A warming Atlantic is probably increasing the intensity of hurricanes. Average sea temperatures have lifted by 0.76C over the past 100 years.
Scientists are not sure whether there will be more storms, said Spiegel, although the intensity of each hurricane will increase.
Spiegel also predicts that Europe will experience more heatwaves and heavier downpours.
“Some global warming will be unavoidable. Trends need to be assessed and envisaged into risk management,” he said.
Spiegel also believes companies should offer their employees subsidies and incentives to follow green initiatives.