Insurers See Jump in Climate Risks

May 8, 2019

Wyoming Public Media:

According to a new report, climate change is now the number one concern for North American insurers.
Max Rudolph, fellow of the Society of Actuaries and author of the report, said this is the 12th year the group published an analysis.
“Climate change took the biggest jump this year of I believe any risk that I can remember, seeing it jump from 7 percent up to 22 percent,” he said.
Rudolph added that it’s becoming harder for risk managers to avoid thinking about climate change. He pointed to major hurricanes in 2017 and the longer, more intense wildfire seasons we’re seeing in the west.
“My personal opinion is that this is a case of the risk managers catching up to the actual risk that is out there,” he explained.

Annual Survey of Emerging Risks:

In comparing this year’s results to prior year results, the cyber/interconnectedness of infrastructure risk remained strong, no longer with a clean sweep but at least second place in each of the four questions listed above. This risk continued its position as number one for top five emerging risks, increasing to 56% as shown in figure 1. For the other three questions it fell to number two. It was runner-up for top current risk (12%), top emerging risk (15%), and combination risk (9% of all the risks chosen, in combination with another risk).  Climate change risk, the survey’s big mover, now is considered the top current risk (12%), top emerging risk (22%), top combination risk (11%), and is second among top five emerging risks (49%, with a leading increase of 20% as shown in figure 2).

4 Responses to “Insurers See Jump in Climate Risks”

  1. rhymeswithgoalie Says:

    We’ve gotten mainstream media to start talking about climate change. The next hard problem is to have adult conversations about triage and abandonment of a lot of communities.

  2. redskylite Says:

    Talking of longer and more intense wildfire, once again in the Siberian taiga. outbreaks are looking grim.

    Wildfires ravage Siberia and Far East of Russia
    By The Siberian Times reporter08 May 2019

    At least three are dangerously close to population centres in Irkutsk region.

    More than a half of the affected area is covered with precious forest which takes years to re-grow.

    Residents are warned that due to dry and windy weather rescuers predict high and extremely high probability of more wildfires.

  3. redskylite Says:

    From Bob Henson on NOAA’s U.S climate summary:

    The Wettest 12 Months in U.S. History

    The 12 months ending in April 2019 were the wettest year-long period in U.S. records going back to 1895, according to the monthly U.S. climate summary issued Wednesday by the NOAA National Centers for Environmental Information. Averaged across the contiguous U.S., the total of 36.20” made the period from May 2018 to April 2019 the first year-long span ever to top 36”. The old record for any 12-month period was 35.78”, from April 2015 to March 2016.

    Given the fierce drought-related impacts of the 2010s—including multiple deadly wildfire disasters from Tennessee to California—it may seem a bit counterintuitive that the nation has actually been getting wetter overall.

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