Terror / Disaster insurance | Homeland Security Newswire

  • Climate threatsInsurance industry dangerously unprepared for extreme weather

    As historic flooding caused by climate change devastates coastal communities, new research reveals that the insurance industry hasn’t considered a changing climate in their practices, putting homeowners at financial risk.

  • Terrorism insuranceInsurer hails U.K. government action to close the terrorism insurance gap

    Pool Re the other day welcomed the U.K. government’s commitment to amend the 1993 Reinsurance (Acts of Terrorism) Act to enable the reinsurer to extend its cover to include non-damage business interruption losses resulting from acts of terrorism. The reinsurer is currently restricted by the 1993 Act only to pay out if physical damage has occurred to commercial property. This means that businesses, inside a police cordon, that suffer financial loss through being unable to access their property or to trade, are only covered if there has been physical damage during a terrorist attack.

  • Climate-change costs2017 climate, weather disasters in U.S. totaling $306 billion — a new record

    2017 will be remembered as a year of extremes for the United States as floods, tornadoes, hurricanes, drought, fires, and freezes claimed hundreds of lives and visited economic hardship upon the nation. The average U.S. temperature in 2017 was 54.6 degrees F (2.6 degrees F above average), making 2017 third warmest year in 123 years of record-keeping. The five warmest years on record for the United States all have occurred since 2006. In 2017, the United States experienced 16 weather and climate disasters each with losses exceeding $1 billion, totaling approximately $306 billion — a new U.S. record. Far more tragic was the human toll. At least 362 people died and many more were injured during the course of these disasters.

  • Natural disasterHurricanes make 2017 year of highest insured losses ever

    The hurricane trio of Harvey, Irma, and Maria will cost the insurance industry a record amount in 2017: the final insurance bill for those and other natural catastrophes, including a severe earthquake in Mexico, is expected to come to $135 billion – higher than ever before. And overall losses – that is, including uninsured losses – amounted to $330 billion, the second-highest figure ever recorded for natural disasters. The only costlier year so far was 2011, when the Tohoku earthquake in Japan contributed to overall losses of $354 billion in today’s dollars.

  • Climate-change costBillion-dollar weather and climate disasters on the rise

    from 1980 to 2017, the United States has sustained 218 weather and climate disasters in which overall damages/costs reached or exceeded $1 billion (including CPI adjustment to 2017). The total cost of these 218 events exceeds $1.2 trillion. This total does not yet include the costs for Hurricanes Harvey, Irma and Maria. Between 1 January and 6 October 2017, there have been fifteen weather and climate disaster events with losses exceeding $1 billion each across the United States. The 1980–2016 annual average pf weather events with losses exceeding $1 billion each is 5.5 events (CPI-adjusted); the annual average for the most recent 5 years (2012–2016) is 10.6 events (CPI-adjusted).

  • Flood insuranceAfter hurricanes, Congress ponders future of flood insurance program

    By Abby Livingston

    The devastating hit Houston took from Hurricane Harvey has exacerbated — and highlighted — the enormous financial jam facing the National Flood Insurance Program. Thanks to the recent onslaught of hurricanes hitting Texas, Florida and Puerto Rico, there has never been a greater need for the program. But that need has also set off a new round of calls to dramatically overhaul a program that hasn’t been able to sustain itself without major subsidies from the U.S. Treasury.

  • Hurricane IrmaHurricane loss model estimates damage caused by Hurricane Irma at $19 billion

    A team of researchers estimates that Hurricane Irma caused $19.4 billion in wind-related losses to Florida residents alone. The data does not cover flood losses. Of that total, $6.3 billion will be paid by insurance companies. As a result, roughly two-thirds of the losses will be borne by homeowners.

  • Disaster costEconomic costs of Harvey, Irma $200-$300 billion; insured cost to reach $70 billion

    The insured cost of Hurricanes Harvey and Irma is likely to reach $70 billion, while the economic cost — which includes uninsured losses – is in the range of $200 billion to $300 billion, leading insurers say. Lloyd’s of London said the claims would make 2017 one of the worst years for natural disasters with the hurricane season not yet over.

  • Hurricane HarveyHarvey's cost could reach $100 billion: Insurance experts

    The floods caused by Hurricane Harvey are only going to worsen in the coming days, but insurance experts say that estimates based on the damage Harvey has already caused suggest that the financial cost of the devastating hurricane could be as high as $100 billion. The 2005 Hurricane Katrina-caused damaged reached $120 billion, of which $80 billion were insured losses. The 2012 Megastorm Sandy caused $75 billion in economic losses.

  • PreparednessRisk reduction: What drives preparedness?

    More targeted efforts are needed from both the public and private insurance sectors in order to encourage people to take action to reduce their risk of flood damage, according to a new study of three European countries. “Currently neither insurance nor governments successfully encourage risk reduction. Increased and more targeted efforts particularly from local authorities will be important, and have the capacity to change the picture. This will be exceedingly important considering extreme events from climate change,” says one expert.

  • CyberattacksCyberattack could cost $120 billion: Lloyd’s

    Insurance giant Lloyd’s of London has warned that the cost of a serious cyberattack to the global economy could reach $120 billion or more – which was the cost of damage inflicted by Hurricanes Katrina or Sandy. insurance firm says the threat posed by global cyberattacks has spiraled, and that it poses a huge risk over the next decade to business and governments everywhere. Trevor Maynard, Lloyd’s head of innovation and co-author of the report, said that where people are involved, risk changes quite rapidly — from cyberattacks to terrorism and political risk – but that from year to year, such risks vary relatively little. “But climate change in the end will be far larger as a risk,” he said, and it remains the biggest challenge in the long run.

  • Emerging threatsClimate change likely to increase risk of costly storms in U.K.

    The impact of climate change on the United Kingdom is likely to mean a higher number of more expensive wind storms, the insurance industry warned. New analysis done for the Association of British Insurers (ABI) shows temperature increases of just a small number of degrees are likely to lead to insurance losses for high winds which could be 11 percent, 23 percent, or even 25 percent higher nationwide.

  • Global risksPopulism, terrorism converge to compound global risks

    Aon publishes 2017 Risk Maps for Political Risk, Terrorism and Political Violence shows there has been a 14 percent increase in the number of terrorist attacks worldwide in 2016, up to 4,151 from 3,633 in 2015. Western countries saw a 174 percent increase in terrorist attacks in 2016, up from 35 attacks in 2015 to 96 attacks in 2016. Oil and gas companies were the target of 41 percent of terrorist attacks on commercial interests in 2016 and the trend has continued in 2017. But 2017 marks the first year in the last four where as many countries experienced a decline in political risk for investors as those experiencing an increase. This suggests a modest improvement in economic resilience after many years of deterioration. The potential for divergence between the United States and Europe around sanctions regimes could create uncertainty for investors in Iran, Russia, and even Cuba.

  • Disaster-related lossHarsh U.S. weather in March expected to cost insurers more than $2 billion

    An extremely active period for severe weather persisted in the United States throughout March, as four separate significant outbreaks led to extensive damage in central and eastern parts of the country. The most prolific outbreak from 6 to 10 March resulted in major damage from tornadoes, large hail, and straight-line winds in the Plains, Midwest, and Southeast. Total economic losses for this event alone were estimated at $1.7 billion, while public and private insurance claims were listed at $1.2 billion. The aggregated cost to the insurance industry from the four events was expected to exceed $2.0 billion.

  • Flood insuranceRising flood insurance costs a growing burden to communities, NYC homeowners

    Flood insurance is already difficult to afford for many homeowners in New York City, and the situation will only worsen as flood maps are revised to reflect current risk and if the federal government continues to move toward risk-based rates, according to a new study.of-its-kind study by the RAND Corporation.