Munich Re Group Annual Report 2006 (PDF, 1.8

Munich Re Group Annual Report 2006
Page 10
Heike Trilovszky at the Hohenpeißenberg
weather station near the Bavarian Alps. The
station’s climate records go back to 1781.
Page 12
Hohenpeißenberg is one of 22 global observing
stations around the world monitoring negative
impacts on the atmosphere as part of the Global
Atmosphere Watch Programme.
12
Are you saying that the Stern Review’s
findings match Munich Re’s?
Heike Trilovszky_ The Stern
Review’s conclusions go a long way
into the future. There is certainly room
for discussion about individual figures,
but we share the view that the
climate is changing, that we are seeing
global warming, and that we are
already experiencing more extreme
weather. And also that climate change
will be very expensive – because it’s
too late to curb it immediately.
Can the insurance industry continue
to bear the consequences?
Heike Trilovszky_ It is undoubtedly
affected by this development and will
play its part in tackling the problem.
But if higher losses are to be expected,
premiums have to keep pace. In other
words, the community of policyholders
ultimately has to pay for the increased
risk. It’s also clear that the
insurance industry can help shoulder
only the financial consequences – let’s
not forget that one of the main threats
posed by natural catastrophes is to
human life. In addition, a large portion
of the loss and damage is not insured.
Of course, preventing losses and
adjusting to the new challenges also
cost money. But as the Stern Review
shows, it would be a price worth paying:
from the economic point of view,
it would be sensible to act now.