Zurich mulls lower premiums for hybrids

Dedicated climate change team to develop new global warming-related insurance packages

Zurich Financial Services (ZFS) has launched a dedicated team for assessing the impact of global warming in a move that the insurance giant said could result in lower premiums for customers that take action to mitigate climate change risks.

The company said the new team would focus on the development of products and services addressing climate change risks and Zurich's own strategy for reducing its carbon footprint.

A spokesman said these new insurance offerings could result in attractive premiums for firms that invest in tackling climate change. "For example, with car insurance if you have a hybrid your insurance could be offered at a lower premium," he explained.

Similarly, buildings that embrace new renewable energy technologies or energy efficiency measures could be offered new insurance packages, while those at the greatest risk from climate change could see premiums rise.

Zurich's global chief underwriting officer, Mike Kerner, said that the new team would look beyond the weather-related risks associated with climate change that have traditionally attracted insurers' attention. "The risks associated with climate change go well beyond rising sea levels, and reflect the burgeoning regulatory and financial infrastructures being created to address this major societal concern," he said.

The company insisted that it was already actively addressing climate change risks, but argued the new Climate Office would "establish a consistent and focused approach to the risk class globally" and provide a focus for new research which will shape product development.