• Climate threatsEnvironmental “secondary perils” an increasing threat: Swiss Re

    The catastrophe loss experience of the last two years is a wake-up call for the insurance industry, highlighting a trend of growing devastation wreaked by so-called ‘secondary perils’ – which are independent small to mid-sized events, or secondary effects of a primary disaster.

  • FloodsClimate-smart national flood insurance program

    By Dena Adler

    Last month the Midwest faced historic floods that devastated rural communities, drowned farms, contaminated water supplies, and resulted in billions of dollars in damages. As climate change exacerbates the risk of these catastrophic flooding events, Congress can help citizens take these actions to adapt to the risks of climate change by adopting a package of climate-smart reforms for the National Flood Insurance Program (NFIP).

  • Natural disasters2018 fourth costliest year in insured losses

    2018 was the fourth-costliest year since 1980 in terms of insured losses. This was due to an accumulation of severe and costly events in the second half of the year. A comparison with the last 30 years shows that 2018 was above the inflation-adjusted overall loss average of $140bn. The figure for insured losses – $80bn – was significantly higher than the 30-year average of $41bn. 2018 therefore ranks among the ten costliest disaster years in terms of overall losses, and was the fourth-costliest year since 1980 for the insurance industry.

  • 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.