By Cathy Dippnall
The international insurance community has warned that some world regions, including parts of the Garden Route, could become uninsurable should global warming continue unchecked.
The warning was made at the United Nationals Environmental Programme conference in Cape Town last month as the effects of climate change are causing increasing natural disasters. Conference delegates called on developing countries to cut greenhouse emissions drastically over the next 10 years.
Coastal regions are vulnerable to climate change and land owners could find themselves paying prohibitive insurance premiums for properties in affected areas.
Knysna and Great Brak River came under the spotlight by local insurers after severe flooding in 2006/07.
“There is compelling evidence that climate change has increased instances of flash flooding and other destructive natural storm phenomena in the country,” Santam executive risk se rvices head Hendry Nigrini said yesterday.
He said it was unlikely that any region in South Africa would ever become uninsurable, but if a client were in a high-risk area due to climate change, the company would seek ways of lessening the risk factor and charge higher premiums or a specific excess.
Santam, a member of the ClimateWise insurance group, will issue a detailed report by early next year of properties at specific risk in coastal regions and close to rivers.
According to Economic Commission for Africa executive secretary Aboulie Janneh, who addressed the regional commission on climate change, by 2020 up to 200 million people will be exposed to increased water stress, while agricultural yields will drop by 50%.
“By the end of the century, rising sea levels will also affect low-lying coastal areas.”
In 2006 and 2007, heavy rains wreaked havoc on the Garden Route.
