The effects of climate change have already begun to increase the number of insured losses in the emerging markets such as India, according to reinsurer Munich Re.

"Climate change presents a particular challenge to fast-growing emerging countries like India. In conjunction with greater prosperity and the effects of climate change, there is a distinct increase in losses,” comments Torsten Jeworrek from Munich Re's board of management.

He adds: "For this reason, our geo-risk researchers undertake intensive examinations of the changing risk situation in countries like India. We use this special know-how to ensure our underwriting is based on risk-adequate prices, terms and conditions and also make it available to our clients as a service."

The insurer has released its annual review, Topics Geo - Natural Catastrophes 2007, which highlights problems such as the increasingly intense monsoon rainfall in India, which is being linked to global warming.

At the same India's economy is rapidly growing, leading to increased demand for insurance and higher concentrations of values, particularly in exposed regions like Mumbai. This has resulted in increased insured losses. Annual losses between 1980 and 2004 averaged no more than US$5mn, but in 2006 losses exceeded US$400mn.

Munich Re's research noted that natural catastrophes in 2007 were within the range expected and mirrors trends in recent years. Overall global losses came to US$82bn, of which nearly US$30bn was carried by the insurance industry. Losses were far higher than the previous year, but 2006 figures were exceptionally low.