General Insurance Benefits in Facing Climate Change

    In the last two centuries, human activity has increased greenhouse gases, like carbon dioxide (CO2), which retain heat in the atmosphere of the sun such as blankets, warm climate of the earth and created the "global warming". Since the industrial revolution, the average temperature on earth has risen sharply and very quickly. Studies show that increases in air temperature in recent years may lead to an increase in frequency and severity of natural disasters such as tropical storms and hurricanes. This and other changes would give big consequences for life on earth.            World business community began to realize that climate change may lead to physical risks and risks related to weather in the future. Vice Chairman of Merrill Lynch recently stated "We were doing chemical experiments with a large dahysat consequences of our environment, our economy, and human life." While the parties from Goldman Sachs in its environment policy statement in 2005 stating that climate change is one of the greatest environmental challenges of the twenty-first century and is closely linked to other important issues such as economic growth and development, poverty eradication, access to clean water , and supply enough energy.
            Some of the latest scientific discoveries states some alarming facts, namely that the global sea level rise is expected to rise an average minimum of 0.28 m in this century. Besides the risk of forest fires will be exacerbated by natural trends such as rising air temperatures, drier conditions. Climate change is also expected to affect the hydrological cycle, which can cause flooding. Even flooding is likely to cause major economic losses in future years. The temperature of the warmer seawater will also very likely increase the intensity of hurricanes. All these facts coupled with large population growth and increased investment in a region highly vulnerable to the damaging effects of climate change.
            According to the Action Agenda is composed of insurance companies and the WWF in 2006, there are many activities that can be done by insurance companies and industry associations. In this case different solutions will suit different companies depending on their portfolio of products, corporate culture, and relationships with local and central government. Examples of activities that can be done the insurance and associated industries to reduce the physical impacts of climate change, or adapt to the impacts consist of three main steps, namely: improve understanding (understanding) will be problems, mengirim a stronger signal of risk to the community, and prepare and adapt to climate change.