The Lloyd’s Risk Blog » Blog Archive » Catlin Arctic survey team starts trek

The Catlin Arctic Survey ice team has started its gruelling trek to the North Pole to discover how quickly the Arctic sea-ice is melting.

Renowned explorer Pen Hadow, along with Ann Daniels and Martin Hartley, were dropped onto the ice by plane 800km (500 miles) off the northern coast of Canada.

During their 1,000km journey they will measure the thickness of the ice, transmitting readings from a mobile radar unit by satellite back to London.

Lloyd’s insurer Catlin is sponsoring the expedition because it believes the implications of global warming for the insurance industry and insureds are stark. However, there are gaps in scientific knowledge and the rate of global warming is not yet proven.

Climate change converts and skeptics alike should welcome the survey’s contribution to providing hard facts: insurers and insureds need to know how they will be affected by global warming.

Clearly, insurers will be hit directly by more frequent, more severe nat cat losses. But the industry is good at risk management and getting better. Its expertise in risk identification and modeling can be shared for the benefit of its customers.

In fact, global warming and climate change even represents a serendipitous opportunity for the industry. If we know the risks, the industry can develop new products to help make businesses and households more resilient.

The Catlin Arctic Survey’s findings will also help inform negotiations over emission levels at the post-Kyoto meeting in Copenhagen in December this year.

After that, insurers will probably be involved in a market-based certification and trading scheme that aims to reduce global emissions of greenhouse gases.

Risk identification, risk analysis, risk transfer: the insurance industry has a lot to contribute to the vexed questions surrounding global warming.