It’s encouraging to see California governor Arnold Schwarzenegger take a non-partisan approach to environmental issues. There was news last week that Schwarzenegger met with Lloyd’s of London chairman about how the insurance market could work with the governor on environmental issues.
The burning question is the risk profile of global warming. As a largely coastal state, environmental pressures could lead to large-scale catastrophe in California. Meeting with the insurance market and discussing the issues of risk is a very practical and proactive approach to pending problems.
I really like the fact that someone in a leadership position is addressing this topic in a rational and measured manner. By enlisting the insurance industry’s help, he puts in motion a means to manage the state’s liability in face of risk. Insurance companies have the power to manage growth, particularly in areas that might be impacted by rising sea level. By creating a market to share this risk there will be opportunities and regulation that’s driven by a measure of risk rather than completely immediate economic gains.
California has long been a progressive state in terms of environmental regulations, having been one of the first to enact Kyoto-style targets for emissions. Hopefully the state will move into a more proactive role on many environmental issues. We could use a few leaders who understand the role that policy plays in combating global warming.
