News

Climate change now part of catastrophe models according to Lloyd’s

News >>

Severe storms in Europe could quadruple in number and flood risks may triple by 2080, according to new climate change scenarios outlined in a Lloyd’s report.

Catastrophe Modelling & Climate Changeproduced by Lloyd’s Exposure Management & Reinsurance team, says policymakers and planners need to make use of climate model projections, but also take account of the uncertainty in them.

“There are good physical reasons to expect events to become more extreme,” Head of Exposure Management & Reinsurance Trevor Maynard says in the report.

“For example, as the temperature rises the humidity rises, giving the potential for larger floods.”

The report says the frequency of heatwaves has increased in Europe, Asia and Australia, but drought is expected to decrease in northwestern Australia and central North America.

Lloyd’s says the climate is changing and it is imperative that any trends are considered and incorporated into catastrophe models. The report includes short articles by the major risk modelling companies.

All of the contributors confirmed that where any trends are established in the data, they will be included in their model calibration processes. The report says re-evaluation is important, because scientific consensus around the effects of climate change is strengthening.

The study AIR Worldwide carried out for the Lloyd’s report focuses on the South Pacific, and says Geoscience Australia expects a future increase in the frequency of tropical depressions, tropical storms and category 5 storms.

“Rising sea levels around the world could have significant implications for insurers in the context of storm surge,” another modeller, RMS, says. It points out that Superstorm Sandy, which struck along the US east coast in 2012, broke 16 historical tide records.

RMS Senior Director Paul Wilson says climate change-induced sea level rises caused Superstorm Sandy's surge losses in New York to be 30% higher than they might otherwise have been.

The report says 2011 is regarded as a record year for natural catastrophes overall, with insured losses costing the industry more than $US127 billion ($135.7 billion).

Last changed: May 12 2014 at 4:35 PM

Comments

  1. None Found

Add Comment

Latest News

Will you lose the value of a Broker?

If you listen to the Podcast on this link you will here Robert Cooper explain to his Accountant why Small Business stands to lose if Insurance Brokers are not there to advise start up businesses and established businesses about the risks their occupation carries and how they can deal with them. Simply because they will not want to pay the fees that would be charged. Currently instead, Insurance Companies pay the Broker after the Insurance has been placed with them. Perhaps the premiums will appear a bit cheaper in the first year? Then they will question the fees an Insurance Broker puts on top and finds they can go to the Internet and obtain the same cover at the same price. However, they will not have the constant advice and claims advocacy that comes with an Insurance Broker. The big loser is definitely the Consumer as direct insurers give absolutely no advice, only price.

read more

Robert Cooper - one of 100 faces of small business

This week it was announced as part of Small Business Week,  that Robert has been named one of the 100 faces of small business for a State Government promotion on the great value that small businesses play in the State of Queensland.

You can see Robert's entry here:

It is the third accolade for CPR Insurance Services in a month and after seven and a half years in business is a real pep up for the company.

For Robert, it is the culmination of many years experience, becoming well qualified, experiencing the highs and lows of a career and always wanting to contribute to his community. Sometimes, these things just come together and you receive recognition for your efforts.

Robert says that there is no doubt that starting your own business is a huge challenge, but with the right research and planning, the right people around you and a good set of values that you apply to the vision of the company, you have a very good chance of making it all succeed.

Robert says he is lucky. He has a strong supportive Wife, Mandy, who is also part of the business, along with efficient and hard working staff such as Julia McLauchlan and Aidan Harmer who are building up their own skills in a learning environment. 

However, the most important and most supportive people for CPR Insurance Services are our clients who have stuck by us and supported us over the past seven years. Our focus remains on providing the best possible service we can and always acting in their best interests. To all our clients, we say thank you!

read more