Lawsuits related to climate change could expand faster than the explosion of asbestos claims and have significant impact on insurers, Swiss Re is warning in a new report.

The Zurich-based firm, in an examination of the consequences of globalization of class actions on insurers, said, “We expect, however, that climate change-related liability will develop more quickly than asbestos-related claims and believe the frequency and sustainability of climate change-related litigation could become a significant issue within the next couple of years…”

The company advised, “Given the potential implications of this shift for the insurance industry, developments need to be monitored closely.”

At the moment, the report noted, while a legal basis has been established in the case of a climate change-related lawsuit against a public entity, there had not been a similar standing against a private entity through 2008.

Read the full story here on the National Underwriter website.