Life insurers urged to prepare for climate change

That was the message from George Stavliotis, a Sydne-based vice-president of Swiss Re, to attendees at the recent FSC conference in Auckland.

Stavliotis said the issue was very new and major health effects from climate change would probably not manifest until about 2080. But the life sector should prepare for impact in three main areas: heat, pollution and transmittable diseases. In particular, there would be an increase in cancers and cardio-respiratory conditions, meaning a higher number of health and disability claims.

There would also be mental health considerations - for example, people in some regions of Australia have suffered more than one flood in the past year. “The impact on these people in terms of mental health is something we need to start looking at as well.”

The other big change facing the life insurance sector is digitisation. Bringing more digital channels to market is the key to life insurance going forward, according to PwC partner Ben Coulter, who was part of a four-person panel set up at the conference to discuss the future of life insurance.