Sustainable property development is being held back by insurance firms. The ‘like for like’ policy used by the industry is hindering the construction of environmentally friendly office buildings after major losses.
Cliff Warman, Environmental Practice Leader at Marsh in Europe, the Middle East and Africa said: “Minimising the potential impact of the changing climate is high on many boardroom agendas, yet too many insurers have yet to adapt their policies to recognise the value we now place on environmental performance.
“Property sustainability clauses are an important component in the insurance industry’s armoury against climate change. Building and rebuilding environmentally friendly and resilient properties which have strong loss prevention attributes benefit both the insured and the insurer: insurers will experience fewer claims and related costs; and clients will have more robust and energy-efficient buildings.”
Director at BRE Global Martin Townsend is responsible for BRE’s Environmental Assessment Methodology (BREEAM). He said: “The insurance community has a clear role to play… Organisations that understand the need to improve the performance of existing commercial building stock are those that are likely to be more successful during these difficult economic times, and who will continue to succeed in the longer term.”
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