The Association of Bermuda Insurers and Reinsurers (ABIR) has joined forces with a number of other insurance industry and environmental groups to back a report by into climate change as a long-term priority for insurers.

ABIR along with the Reinsurance Association of America, the Sierra Club, the National Wildlife Federation and Ceres sent a letter to Senator Barbara Boxer (Democrat, California) endorsing and highlighting the study published by the Geneva Association.

"As leaders of environmental organisations and insurance companies, we are in strong agreement on the urgent need to move away from the carbon economy," read the letter signed by executives from the groups.

"We recognise the importance of crafting policies that promote the use of carbon reducing technologies and using various insurance policies to encourage climate enhancing decisions and to discourage activities that contribute to climate change."

The Geneva Association, a global organisation composed of CEOs from the world's top insurance companies, recently released the report entitled "The Insurance Industry and Climate Change - Contribution to the Global Debate".

The report highlights the insurance sector's understanding of the critical need to mitigate the effects of climate change. It also portrays the threats posed by climate change to the insurance industry, including significantly increasing both risks and losses for its customers around the world.

The report goes on to recommend steps that the insurance industry can take to address the potential adverse impacts of climate change, including creating insurance contracts "with incentives for prevention or sufficiency solutions" in areas of improved energy performance.

In their letter to Senator Boxer, the environmental and insurance leaders, wrote: "The insurance industry will continue to be an unparalleled source of expertise in the area of risk management. As we look to address climate change, we must also search for ways to reduce the risks caused by its immediate and future effects. Insurers are able to offer experience and insight into the risks posed by environmental changes worldwide."