Air pollution is the fastest growing protection gap in insurance coverage for climate risks, according to a survey of Airmic members.

Nearly 40% of respondents in the research said that air pollution is a protection gap for their organisations’ climate risk insurance coverage, up from 21% in May 2023 when Airmic members were last polled on the same question.

Earlier this week, the House of Commons released a new research briefing on air quality, which highlighted that poor air quality is considered by the government to be “the largest environmental risk to public health in the UK”.

Hoe-Yeong Loke, head of research at Airmic, said: “Our members report that pollution is a standard exclusion under most policies, while they are not fully aware about liability policies that would respond to allegations of or actual air pollution caused by their organisations, other than if made directly against their directors and officers.”

More generally on climate risks, Airmic members say reinsurers are seeking increasingly detailed information or blanket exclusions, particularly in the US. Loke added: “The bigger question perhaps is that buyers think they have cover, but there may be caps on that cover, or that insurers may not always be clear on the exceptions. This is where we need to educate ourselves and our organisations, so that everyone is clear on what is covered.”

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