British regulator issues insurance guidelines for climate change

Rob Langston in the Financial Times: The Financial Services Authority (FSA) has issued new insurance guidelines on the effect of climate change, as it anticipates higher and more frequent building and contents claims. The regulator said changing weather patterns could cause a surge in claims prompting it to issue new guidance for general insurers.

It said the aim was to ensure consumers received clear and accurate information about what is covered and any significant exclusions. A spokesperson for the regulator said: "Climate change poses risks to all businesses through physical damage to assets, long-term damage to growth prospects and short-term business disruption. For the insurance industry, the challenges are even greater as changes in climate could also result in higher and more frequent claims through flooding, windstorms or forest fires."

The regulator said a review of the general insurance industry had found some insurers may not be treating customer fairly. It said insurers should use clear and unambiguous language and highlight the significance of lapsing a policy….

Wrecker with horse and wagon gathering wreckage on a Dutch beach, 1932.