• 3 minutes Biden Seeks $2 Trillion Clean Energy And Infrastructure Spending Boost
  • 5 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 8 minutes Gazprom fails to exempt Nord Stream-2 from EU market rules
  • 4 hours China wields coronavirus to nationalize American-owned carmaker
  • 32 mins Open letter from Politico about US-russian relations
  • 2 days Trumpist lies about coronavirus too bad for Facebook - BANNED!
  • 20 hours Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 38 mins Joe Biden the "Archie Bunker" of the left selects Kamala Harris for VP . . . . . . Does she help the campaign ?
  • 16 hours US will pay for companies to bring supply chains home from China: Kudlow - COVID-19 has highlighted the problem of relying too heavily on one country for production
  • 2 days China's impending economic meltdown
  • 2 days Why Oil could hit $100
  • 5 hours Trump is turning USA into a 3rd world dictatorship
  • 3 days Pompeo upsets China; oil & gas prices to fall
  • 3 days Brent above $45. Holding breath for $50??
  • 2 days Rational analysis of CV19 from Harvard Medical School
  • 2 days The Truth about Chinese and Indian Engineering
  • 2 days What the heroin industry can teach us about solar power (BBC)
ExxonMobil & Berkeley Make Major Breakthrough In Carbon Capture Tech

ExxonMobil & Berkeley Make Major Breakthrough In Carbon Capture Tech

Scientists from ExxonMobil, University of…

What To Expect From The European Green New Deal

What To Expect From The European Green New Deal

The European Commission is set…

Why Covid-19 Won’t Kill The Renewable Revolution

Why Covid-19 Won’t Kill The Renewable Revolution

The global economy is hanging…

Peter Sinclair

Peter Sinclair

Peter Sinclair is a long time advocate of environmental awareness and energy alternatives. An award winning graphic artist, illustrator, and animator, Mr. Sinclair runs Greenman…

More Info

Premium Content

Insurance Companies Feeling the Effects of Climate Change

Environmentalists are not the only ones who worry as projections about climate change keep getting worse and worse. So do insurance companies, which feel the effects financially as the pace of climate-related disasters accelerates. It is telling that, even as some business groups oppose climate-change legislation in Washington, many of the companies with the most to lose from global warming are treating it as a reality – and pricing their products accordingly.

Losses from extreme weather related to climate change are no longer chump change. Allstate CEO Tom Wilson this year told investors that catastrophic weather losses beyond hurricanes and earthquakes had risen four-fold over the last three years, to $2 billion. Premiums for homeowners were rising 7 percent this year, Wilson said, noting that a big driver is roof damage from hail and wind.

“If you had asked me did I think we could have a $355 million hailstorm in Arizona [in 2010], I wouldn’t have thought that hail could be that bad in Arizona,’’ Wilson said in one meeting. Wilson said pricing premiums to account for increased extreme weather events “is permanent.’’

Other insurers are seeing the same patterns. German insurance giant Munich Re estimated that in the first half of 2011, the world suffered a record $265 billion economic loss from severe natural catastrophes. Most of the economic losses came with the earthquakes in Japan and New Zealand, but the biggest weather-related economic losses were still enormous — the $15 billion in the United States from the tornadoes and severe thunderstorms that swept across the Midwest and the South.
Perhaps those who aren’t yet concerned about climate change will be persuaded by hail on their roofs or cracks in the very foundations of their homes. “Unfortunately, a year like 2011 does our work for us,’’ said Sharlene Leurig, insurance analyst for Ceres, the Boston-based nonprofit that promotes corporate responsibility on climate change. “Insurers think it is a crisis unfolding. Real estate experts are starting to recalculate the value of real estate in areas of frequent extreme weather. We’re getting to the point where climate destabilization is really beginning to destabilize the real lives of people.’’

Business Green:

The number of weather-related natural disasters soared last year, providing “further evidence of advancing climate change”, according to a major report from one of the world’s leading reinsurance firms.

Munich Re said that 950 natural disasters were recorded last year, nine tenths of which were weather-related events such as storms, floods or heat waves. The total represents the second highest number of natural disasters recorded since 1980 and is 21 per cent higher than the average number of annual incidents recorded over the past decade.

“The high number of weather-related natural catastrophes and record temperatures both globally and in different regions of the world provide further indications of advancing climate change,” the company said in a statement.

In particular, the report highlighted how losses arising from the Pakistan floods reached $9.5bn and how the deadly heat wave in Russia led to 56,000 premature deaths.

By. Peter Sinclair

Source: Climate Crocks


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News