The German insurer Allianz is looking at business opportunities in Thailand and Asia to help manage the growing risk arising from climate change and global warming. ''Climate change is an enormous driver for changes in risk modelling,'' said Armin Sandhoevel, chief executive of the company's new Allianz Climate Solutions unit. ''It is becoming an increasingly important topic for the financial industry worldwide.''

Speaking yesterday in Bangkok, Mr Sandhoevel said Allianz itself had been addressing the risk of climate change on its business lines in a strategic way since 2005.

An in-house study found that 40% of damages in Allianz's global industry insurance business were weather-related, and that weather-related natural catastrophes were becoming more frequent and severe in most parts of the world.

Allianz estimates that damages from weather-related catastrophes could reach US$40 billion per year in the next decade.

Founded in August last year, the climate solutions unit is looking at renewable energy financing, private equity funds, insurance packages for clean technologies, retail asset management funds and carbon-related services.

The key businesses are emission trading, climate-focused insurance, and asset management products.

In Germany, Allianz has introduced ECOmotion, a vehicle insurance programme that neutralises the carbon emissions of insured cars by buying emission reduction certificates from various projects, including a palm oil refinery being built in Chumphon, Thailand.

The Chumphon project's waste water treatment system would collect methane emissions that would be used to produce electricity. It plans to reduce methane equivalent to 234,364 tonnes of carbon dioxide over 10 years.

Bangkok Post, 30.05.2008

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