Climate Change

23 March 2001

Climate Change to Blame for Flood Insurance Price Hike

The Environment Centre of the Northern Territory noted today that the recently announced increases in flood insurance premiums are a direct result of climate change.

Excessive emissions of greenhouse gases such as carbon dioxide are causing the Earth to warm up. This is resulting in massive changes to the planet's weather patterns and causing more extreme storm and drought events. In response to the increase in natural disasters, international reinsurance agencies are sending their prices skyward. These increases are then passed on the TIO, who have no choice but to pass them on to Territorians through their premiums.

The Northern Territory Government expects to increase greenhouse gas emissions in the Territory over the next ten years, which will only increase the risk of increased flooding and storms. The opportunity exists now for the Northern Territory to cut its emissions and contribute to solving this global problem.

"Climate change is here and its impacts are being felt around the world." Environment Centre coordinator Kirsten Blair said today. "Researchers have predicted an increase in extreme weather events as a result of global warming. We are already seeing that increase occurring across the globe, such as the recent violent storms in Europe and South America and unseasonal droughts and floods here in Australia."

"The increase in extreme weather events, including storms and floods, has lead the international reinsuring companies to send their premiums up. The on-the-ground result is that insurers like the TIO are forced to pass this increase on the householders and businesses in potential flood locations."

"If the Northern Territory Government is serious about wanting to minimise this impact on Territorians' hip pockets, it needs to commit to measures to reduce the Territory's greenhouse gas emissions now, as part of the global effort to minimise climate change. The Territory as a developing economy, is in a strong position to grow in areas of sustainable technology but this is an opportunity the Government is yet to grasp," Ms Blair concluded.

For more information on Climate Change contact ECNT:
Phone: 08 8981 1984
Email: ecnt@octa4.net.au

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