Insurance giant warns climate "tipping points" in sight

The world is dangerously close to climatic "tipping points" that could result in catastrophic environmental, social and economic consequences, according to a major new study commissioned by the WWF and global insurance giant Allianz.

The report from the UK's Tyndall Centre warns that, unless carbon emissions peak within the next few years, it is increasingly likely that irreversible environmental changes will occur that could have a huge impact on the global economy.

Most notably, it warns that the melting of the Greenland and the West Antarctic Ice Shield could result in average sea level rises of up 0.5m by 2050 – a scenario that would increase the value of assets at threat in 136 global ports by around $25,000bn (£15,000bn).

The report comes on the same day as a separate satellite study from NASA, which revealed that the East Antarctic ice sheet is melting faster than previously thought, losing around 57 billion tonnes of ice a year into surrounding waters.

The Tyndall report, entitled Major Tipping Points in the Earth's Climate System and Consequences for the Insurance Sector, also warned that the Amazon rainforest was currently heading towards a tipping point where as much of 70 per cent of the rainforest could be affected by "dieback" by the end of the century, resulting in costs of up to $9,000bn.

The report was accompanied by a separate study from the European Climate Foundation think-tank, which assessed the emission reduction pledges currently put forward by countries ahead of the COP15 climate change summit next month. It concluded that even if the targets are met, global emissions will not peak before 2020. It added that as a result, the world is currently on track for an increase in global temperatures of at least 3C and potentially much more.

Allianz said that the increase in climate risks and soaring potential costs meant the company was investigating measures to help customers identify counter measures and considering new forms of insurance cover, better adapted to climate change threats.

"As an insurer and investor, we must prepare our clients for these scenarios as long as we still have leeway for action," said Clemens von Weichs, chief executive of Allianz Reinsurance, hinting that insurers could be forced to withdraw coverage for some customers unless action is taken. "Setting premiums risk-appropriately and sustainably is of vital interest to everyone involved, because this is the only way to ensure that coverage solutions will continue to exist."

In related news, the Association of British Insurers said today that the "once in a 1,000 year" floods that have devastated large parts of Northern England will leave insurers with a bill of up to £100m.

Climate scientists refuse to link any individual extreme weather event to global warming, but climate projections have long warned that rising temperatures will result in the UK experiencing more frequent and severe winter storms similar to those which have affected Cumbria over the past week.