Cambridge plays role in insurance industry's new climate-friendly initiative

The insurance industry this week launched a new initiative to tackle the challenge of climate change and encourage more climate-friendly customer behaviour.

The principles have been developed after nine months of intensive activity by a Working Group consisting of the Association of British Insurers and His Royal Highness's charities, including the Business & the Environment Programme (BEP) and Business in the Community (BitC).

The University of Cambridge Programme for Industry (CPI) represented a group of the Prince of Wales's charities on the Working Group to encourage more climate-friendly behaviour within the insurance industry and amongst its business customers.

The ClimateWise principles have been developed by leading global insurers, reinsurers, brokers and Lloyd's of London to promote action on climate change. They will enable companies and organisations throughout the world to build climate change into their business operations.

Key areas covered include encouraging greater climate-friendly behaviour among customers, investment strategy and risk analysis.

His Royal Highness The Prince of Wales said, "The ClimateWise principles are targeted on those areas of skill and expertise within the insurance sector and are the result of nearly a year's hard work. I hope and pray that they will be useful in encouraging both collective and individual action to tackle climate change and I do congratulate all those involved."

His Royal Highness' charities include the Business & the Environment Programme which CPI itself develops and runs.

Since 1990, weather-related insurance claims have cost an average of £825 million per year in the UK, and have exceeded £1 billion in four out of the last 15 years. In the unusually hot summer of 1995, net losses to agriculture were estimated to be £180 million.

It is believed that these costs will continue to escalate unless we take early action to prepare for the impacts of climate change.