a butterfly’s wings flapping

At this week’s launch of a major report scrutinising the impact of corporate sustainability on a company’s earnings IAG chief executive Michael Hawker set out in no uncertain terms how small changes in the weather directly affect the cost of insurance premiums.

Over the past 140 years, the cost and frequency of insurance claims have been steadily rising in line with global temperatures, Mr Hawker said.

A 1 to 2.2 degrees celsius rise in temperatures can have a significant impact on the ferocity of natural disasters. There is a pattern; they are weather related, they are expensive and we pay for that in our [insurance] premiums, he said.

Sydney Morning Herald, 27 Sep 2003