Global warming could lead to UK insurance costs tripling by 2050

It estimates that more extreme weather could result in the value of claims tripling by the middle of the century, and this will have to be covered by higher premiums. The ABI has also detailed recent extreme weather in the UK.

The number of winter storms in the UK has doubled over the past 50 years, and the 1990s were the warmest decade since records began. The floods in autumn 2000 damaged 10,000 properties and led to claims of nearly £1 billion. Last summer the UK had its highest temperatures on record, boosting subsidence claims to nearly £400 million.

The ABI called for climate change to be taken into account during the design of flood defences, and for building regulations to be changed so properties are more resistant to extreme weather.

John Parker, head of general insurance at the ABI, said: "The report provides the industry with a platform to ensure that appropriate action is taken by insurers, government and other stakeholders to effectively manage climate change."

Environment minister Elliot Morley welcomed the findings and said annual spending on flood defences has increased from £300 million to £400 million since 1997. He said the government was committed to reducing carbon dioxide emissions by two per cent below 1990 levels by 2010.