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A new XL Catlin-commissioned report has warned against the unprecedented changes taking place in the ocean and has urged businesses, governments, and the insurance industry to work together to address their potential impacts.
The report by the International Union for Conservation of Nature (IUCN), titled Ocean connections: An introduction to rising risks from a warming, changing ocean, looked into the impacts and potential consequences of ocean warming and other stressors, such as ocean acidification and deoxygenation, to the marine environment, human life, and society.
“The changing chemistry and physics of the ocean as a result of climate change can have devastating consequences for human life, health, and livelihoods, the scale of which we are only beginning to realise,” said Carl Gustaf Lundin, director of the IUCN’s global marine and polar programme. “The insurance industry can play a significant role in helping businesses, governments, and communities mitigate damages and better adapt to these changes. Insurance against the loss of ecosystems can provide the much-needed protection for people dependent on them for their livelihoods, while encouraging their sustainable management.”
The IUCN report said changes in fishery yields and distribution of fish stocks will affect global food security, while sea-level rise and more frequent extreme weather events are expected to result to increasing damages to property and displacement of people. Bacteria and virus outbreaks are also expected to rise as pathogens spread more easily due to warming waters, while frequent coral bleaching events will impact travel and tourism.
So far, no comprehensive analysis has been made into how much the changing ocean is costing economies, but growing evidence suggests that these costs will be significant, the IUCN report said.
Another report, also released in time with the first-ever Ocean Risk Summit held in Bermuda this week, assessed how the global insurance sector can prepare for the far-reaching impacts caused by the changing ocean, including new modelling systems to account for multiple and inter-connected risks.
The report by Falk Niehörster, director of Climate Risk Innovations, titled Ocean Risk and the Insurance Industry, proposed ways on how the insurance industry can help incentivise greater mitigation strategies to prevent worst-case scenarios.
