Insurers Call for Action to Fight Climate Change in Wake of Asian Tsunami

Munich Re calls for measures to stop climate change, which it sees as being responsible for the disaster.

Published: 12-Jan-2005

seaquake in Southeast Asia may cause massive losses for insurers.

Munich Re, the world’s largest reinsurer, estimates losses to hover around 10 billion euros ($13.6 billion), more of a tentative estimate as the exact numbers are not yet available. Munich Re believes its own losses will total about 100 million euros, due to the fact that high-value insured property is restricted to tourist and harbor areas.

"In spite of the long coastlines affected, the burden on the insurance industry will be limited. The reason for this is that seismic flood waves do not usually reach much further than a few hundred meters inland," Munich Re said.

"What is more, in the majority of these countries, the earthquake risk (including tsunamis) is excluded in property insurance policies, and additional covers -- as well as life and health insurance -- are quite unusual."
The company called for measures to be taken to counter the climate change that in Munich Re’s opinion was responsible for the disaster.

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China and India are among the world's fastest growing economies whose GHG emissions are outpacing their national incomes. Photo of boy working in light bulb factory courtesy of Fayetteville State University.

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