Lloyd's of London called on the insurance industry to factor climate change into risk models on Thursday, adding its voice to those demanding the economic impact of extreme weather be taken seriously.
For the first time, the global insurance market said the industry should consider climate change as a result of increasing greenhouse gas concentrations in the atmosphere. Lloyd's suggested that models used to analyze and measure risk be revised annually to ensure they reflect changing weather patterns.
"Climate change is having a direct impact on the business community and the bottom line. That is an important point—it not an environmental subject, it is an economic subject," Trevor Maynard, head of exposure management at Lloyd's, told CNBC this week.