Climate Change

[Matthew H]

Hi there,

Please could you explain the difference between physical climate risks and climate liability risks?
I have been given the following examples (although I can't remember where from):

• Physical - greenhouse gas emissions which can lead to an increase in mortality due to global warming.
• Climate liability - link established between air pollution and adverse health conditions resulting in a new class of late claims.

But these examples seem very much the same to me. To me, they both seem to be the direct/physical result of climate change.

Thanks,
Matt

 

[Mark Willder]

Hi there,

Please could you explain the difference between physical climate risks and climate liability risks?
I have been given the following examples (although I can't remember where from):

• Physical - greenhouse gas emissions which can lead to an increase in mortality due to global warming.
• Climate liability - link established between air pollution and adverse health conditions resulting in a new class of late claims.

But these examples seem very much the same to me. To me, they both seem to be the direct/physical result of climate change.

Thanks,
Matt

Hi Matt

The idea behind climate liability risk is that the costs come about as a result of a legal challenge. This feels much more likely in a general insurance setting, eg in relation to employers liability insurance. It's worth noting that the same Core Reading appears in every subject.

Best wishes

Mark

 

[Matthew H]

Great, thank you Mark.