Law firm Kennedys, in association with Thomson Reuters Practical Law, has produced a guide that sets out key climate change considerations for the insurance and reinsurance industry. It explains the financial impact of climate change on the industry, the main regulatory obligations on insurers and the key risks and changes that are occurring in different lines of business.

Led by legal director Denise Eastlake alongside a team of lawyers from Kennedys, the guide addresses a number of key trends, including the fact that, increasingly, there are ‘hidden’ climate-related claims in addition to the more obvious natural catastrophe events.

It also includes commentary from a number of experts, including Birgit Vosper, head of global practice group liability at Allianz Global Corporate & Specialty, who reports on claims arising from melting bitumen that Allianz had not seen in the past. Vosper said: “While these may not be specifically labelled as climate-related claims, this is exactly what they are because the materials are melting as a result of the extreme temperatures. It may be impossible to properly capture all the claims that are attributable to the impacts of climate change.”

Among other trends, the guide considers the impact of climate change on the industry, including the economic and financial impact on both insureds and insurers, assesses the industry memberships and organisations working to tackle climate change, and outlines the main regulatory obligations insurers are facing, as well as the key risks and changes that are occurring in different lines of business, including financial lines, property and construction, marine and motor insurance.

Eastlake said: “It was extremely rewarding to collaborate with Practical law to prepare this piece. The breadth and depth of knowledge we have here at Kennedys enabled us to address the impact of climate change for insurers and reinsurers right across all lines of business.”

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