With one of the world’s most developed economies given a short sharp shock over its inability to meet the threat of climate change this week, it does not bode well for businesses, risk managers and insurers across the world.

Wednesday saw the UK Climate Change Committee issue its latest report which said there is now unequivocal evidence that climate change is making extreme weather in the UK more likely and more extreme.  Across the UK, this looks like heatwaves, heavy rainfall, and wildfire-conducive conditions.

However it added: “The UK is not appropriately prepared for this. Notably, there has been no change in addressing this risk with the change in Government.”

It listed its concerns with the warning that the Committee expect these to worsen if no action is taken.

• Over half of England’s top quality agricultural land is at risk of flooding today, with a further increase in total agriculture land at risk expected by 2050. Climate change also poses a major threat to UK biodiversity, at a time when it is degrading rapidly.
• 6.3 million properties in England are in areas at risk of flooding from rivers, the sea, and surface water. This is predicted to rise to around 8 million (one in four) by 2050. Steadily rising sea levels at the UK’s coasts will increase the risk of coastal flooding and exacerbate coastal erosion.
• Over a third of railway and road kilometres are currently at flood risk, predicted to rise to around half by 2050. Extreme heat also disrupts infrastructure systems via rail buckling and power line sagging.
• Heat-related deaths already occur in the thousands each year but could rise several times over to exceed 10,000 in an average year by 2050. This increase is driven by the effect of climate change on a growing aging population, which is increasingly vulnerable to extreme heat.
• Estimates suggest that unchecked climate change could impact UK economic output by up to 7% of GDP by 2050, creating challenges for driving sustainable long-term growth across the country.

Baroness Brown, chair of the Adaptation Committee, said: “We have seen in the last couple of years that the country is not prepared for the impacts of climate change. We know there is worse to come, and we are not ready – indeed in many areas we are not even planning to be ready. The threat is greatest for the most vulnerable: we do not have resilient hospitals, schools, or care homes. Public and private institutions alike are unprepared.

“We can see our country changing before our eyes. People are having to cope with more regular extreme weather impacts. People are experiencing increasing food prices. People are worried about vulnerable family members during heatwaves.

“Ineffective and outdated ways of working within Government are holding back the country’s ability to be future-fit. Is this Government going to face up to the reality of our situation? Failing to act will impact every family and every person in the country.”

The report’s findings prompted Bella O’Dowd, WWF’s head of climate policy to add: “We can all see how our climate is changing – when severe storms are forecast now, people in the six million homes at risk of flooding wonder whether to get the sandbags out rather than just take an umbrella.

“Successive UK governments have left our country and communities woefully underprepared for the impacts of climate change. This is a wake-up call for all government departments as delayed action only increases the costs. The evidence is clear: action on climate unlocks economic opportunities, improves our health and saves lives.  Farmers, communities and businesses can’t afford any more delays.”

The UK government said while it recognised that there was a huge amount to do the funding to deliver what was needed simply was not there.

The concern is that of an economy such as the UK is struggling to meet the costs of climate resilience from the public purse the problem will be replicated in nation’s across the world.

It is likely to place greater emphasis on risk managers and the (re)insurance sector to look at how they can play a part in mitigating the risks and is likely to see national governments looks to the private sector for more answers.

Jon Guy, Editor,

Emerging Risks