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London scoping - ukcip

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Final Report<br />

177<br />

change impacts, e.g. flood risk to <strong>London</strong>, that should be avoided stir a greater regulatory<br />

response from national governments.<br />

Figure 7.2 Insurance - Capital Market Linkages<br />

Property owner<br />

Property insurer<br />

Reinsurer<br />

Capital markets<br />

Pensions Capital markets<br />

Mortgage company<br />

Mortgage broker Mortgage indemnity<br />

insurer<br />

Reinsurer<br />

Capital markets<br />

7.6.4 Socio-Economic Scenario Differences<br />

As with the insurance sector, the financial services industry in <strong>London</strong> will have significant<br />

opportunities to expand in the GM scenario. The rapid rate of expansion in IT technologies and<br />

communications on a global basis would allow increased opportunities for participation in the<br />

trading of climate change mitigation and weather risk financial instruments. Under the RS<br />

scenario, there may be a further development of e.g. EU permit trading regimes but the level of<br />

growth will be less than under the GM scenario.

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