1. Property insurance: risks
and opportunities 2007
Jane Milne
Head of Property and Creditor

2. New risks and old
New/changing risks: ‘Old’ risks:
• Climate change effects • The insurance cycle
on weather perils • Fire
• Public perception of • Terrorism
insurer engagement in • Claims handling and
climate change issues effective communication
• Pandemic ‘flu with customers
• Discrimination/ financial • Underinsurance
inclusion issues
• Determining capital
adequacy

3. Climate change and other
global risks
• Focussed on climate
change issues,
regulatory frameworks
to manage risks, public
spending and
procurement, and links
with insurers’ capital
requirements
• But also includes war
and terrorism risks
• And avian ‘flu and
pandemics

4. Climate impacts
• Fewer cold days and
nights
• Warmer and more frequent
hot days and nights
• More heat waves
• More intense rainfall
events
• Larger areas affected by
droughts
• More tropical cyclones
• More extreme high sea
level incidents

5. How will global trends affect
UK insurance?

6. What are we doing about it?
• Influencing UK and EU
discussions
• Flood defence funding
in CSR07
• A strengthened and
functional planning
system
• Identifying and
facilitating new
opportunities to
mitigate systemic risks
and exploit new
markets

7. Pandemic ‘flu
• MWE showed
insurers to be in good
shape generally
• But possible issues
on handling surge in
claims
• Modelling needs
more consideration
• ABI active on
Government’s National
Recovery WG

8. Discrimination, financial
inclusion and access to
insurance
• Disability
Discrimination
Act 1995
• Discrimination
Green Paper
• Financial
Inclusion Task
Force

9. Not drowning, but waving!

10. Not drowning, but waving!