1. The Big Picture on Insurance and Climate Change March 2007 Presented by: Emerging Issues Subcommittee of the ABA Litigation Section, Insurance Coverage Litigation Committee

2. Disclosure David Brenner dbrenner@riddellwilliams.com Fossil fuel reductions Emission controls New technologies New markets Global coordination / regulation Direct liability suits Water supply disruption Increased wild fires Soil erosion Economic sector disruptions More Megastorms Sallie Kraus skrause@genre.com Climate Change Melting Ice David Godwin dgodwin@cbmlaw.com Shifting Weather Patterns Susan Hogan susan.hogan@kg-law.com Human Health Effects Karen Painter Randall KRandall@connellfoley Response & Remedies Walter Andrews wandrews@hunton.com Wind damage Coastal flooding Beach erosion Coastal inundation Rising ocean temperatures Heat stress Increased cancer risk Infectious disease exposure 1 st Party property damage Liability Developed areas Undeveloped areas Impact on ecosystems / fisheries Increased storms Possible catastrophic failure (loss of thermohaline warming / Gulf stream) Public works Continued development More flooding Loss of ecosystems Drought New infrastructure costs Early snow melt Agriculture Forestry Fisheries Utilities Consumer goods (esp. auto) Insurance Engineering / mitigation Tourism / recreation Benefits v. losses Regional deficiencies Tangible property damage Business interruption Flood exclusions Pollution exclusions Construction defect = CGL Engineering negligence = E&O Pollution = E&O Cold = 1 st party property damage If flooding not sudden = known loss If defective = CGL, E&O Crop failures = crop insurance Fire damage = 1 st party property Power outages = loss of inventory & = business interruption Marine losses = marine insurance Negligent design = E&O Regulatory liability = fines & penalties exclusions Securities disclosure = D&O = pollution exclusion? Pollution liability = EIL Product liability = CGL products / completed operations Design defect = CGL, E&O Construction defect = CGL, E&O Ecoterrorism = terrorism backstop / exclusions Regional conflict / property damage = war / terrorism exclusions Misrepresentations = D&O Guess wrong = D&O Life insurance actuarial risk Health insurance costs If defective Construction defect = CGL Engineering negligence = E&O Marginal cold weather sports = bodily injury = CGL Reporting/disclosure CGL = pollution exclusion

3. More Megastorms Sallie Kraus skrause@genre.com Wind damage Coastal flooding Beach erosion 1 st Party property damage Liability Tangible property damage Business interruption Flood exclusions Pollution exclusions Construction defect = CGL Engineering negligence = E&O Pollution = E&O

4. Melting Ice David Godwin dgodwin@cbmlaw.com Coastal inundation Rising ocean temperatures Developed areas Undeveloped areas Impact on ecosystems / fisheries Increased storms Possible catastrophic failure (loss of thermohaline warming / Gulf stream) Public works Continued development More flooding Loss of ecosystems Cold = 1 st party property damage If flooding not sudden = known loss If defective = CGL, E&O

5. Agriculture Forestry Fisheries Utilities Consumer goods (esp. auto) Insurance Engineering / mitigation Tourism / recreation Water supply disruption Increased wild fires Soil erosion Economic sector disruptions Shifting Weather Patterns Susan Hogan susan.hogan@kg-law.com Drought New infrastructure costs Early snow melt Benefits v. losses Regional deficiencies Crop failures = crop insurance Fire damage = 1 st party property Power outages = loss of inventory & = business interruption Marine losses = marine insurance Negligent design = E&O If defective Construction defect = CGL Engineering negligence = E&O Marginal cold weather sports = bodily injury = CGL

6. Human Health Effects Karen Painter Randall KRandall@connellfoley Heat stress Increased cancer risk Infectious disease exposure Life insurance actuarial risk Health insurance costs

7. Fossil fuel reductions Emission controls New technologies New markets Global coordination / regulation Direct liability suits Response & Remedies Walter Andrews wandrews@hunton.com Regulatory liability = fines & penalties exclusions Securities disclosure = D&O = pollution exclusion? Pollution liability = EIL Product liability = CGL products / completed operations Design defect = CGL, E&O Construction defect = CGL, E&O Ecoterrorism = terrorism backstop / exclusions Regional conflict / property damage = war / terrorism exclusions CGL = pollution exclusion

8. Disclosure David Brenner dbrenner@riddellwilliams.com Misrepresentations = D&O Guess wrong = D&O Reporting/disclosure