Archive for November, 2013



November 29th, 2013

Week’s Top Stories: November 23 - 29, 2013

Posted at 8:00 AM ET

Space Debris Risk: Part I, Orbital Regions: The most serious threat to high-value satellites and space infrastructures in the Earth’s orbit today is the risk of collision with other satellites or space debris. As more satellites are sent into the Earth’s orbit to provide services and technology we now take for granted, including global communications and broadcasting, air traffic control, weather forecasting and disaster management, the area is becoming increasingly cluttered with satellites (operational and defunct) and other fragments, enhancing the risk of collision. Although deorbiting strategies are in place for some modern satellites, tens of thousands of objects still circulate the planet at extremely high speeds.

Read the article

 

Climate Change: A Look into the Future: Global climate models project a best estimate of a further two to four degree (Celsius) increase in the mean temperature of the Earth by the end of this century. Although this may seem insignificant on an intuitive level, the resulting impacts are of significant concern. Sea-level rise is the most significant threat for coastal areas as a result of melting glaciers. Apart from this threat, changing weather patterns will result in drought and inland flood threats for some areas. As a general principle of climate change, changes to the mean of meteorological extreme value distributions can be expected but an increase in tail thickness (or variability) is of greater concern. The day-to-day variability that we see today will likely expand.

Read the article >>

 

Solar Weather Activity: Solar weather is a space-related risk that has the potential to cause huge disruption to infrastructure and businesses around the world. Geomagnetic storm activity is not a new development but technological advancements and an increasingly interconnected global economy have resulted in increased vulnerability. Although extreme solar storms are relatively rare, there have been several notable recent events that have had a damaging impact on Earth. More are certain to occur in the future.

Read the article >>

 

Update: Super Typhoon Haiyan: Haiyan is among the strongest tropical cyclones ever recorded, and meets or surpasses the strongest landfalling tropical cyclone in recorded history. Haiyan made landfall in the Philippines on November 8 near Guiuan, with estimated 1-minute wind speeds of 185-195 mph (300-315 km/hr).

Read the article >>

 

Demand for Asia Pacific Catastrophe Reinsurance at a Record High in 2013: Total Asia Pacific catastrophe limit purchased in 2013 increased for the tenth year in a row, but once again failed to keep pace with strong gross domestic product growth in the region, according to a new report released today by Guy Carpenter.

Read the article >>

 

And, you may have missed…..

Indexation Clauses in Liability Reinsurance Treaties: A Comparison Across Europe: The Indexation Clause - otherwise referred to as the Stability Clause, Inflation Clause or Severe Inflation Clause (SIC) - is designed to maintain the real monetary value of the retention and (where applicable) the limit under a long-tail excess of loss reinsurance treaty over the duration of the claims payout pattern.

Read the article >>

 

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November 28th, 2013

GC Capital Tip: Print-Friendly

Posted at 1:00 AM ET

Take GC Capital Ideas with you on the train in the morning, or bring a copy of an article to a colleague. With the print-friendly feature, you can print articles in a format that are easy to read and share. When you are reading a story on GC Capital Ideas, look for the button in the upper right corner of the article: “Print This Post.” Click it, and you will see the article in its printable form. Then, just click the print button on your web browser. To get back to GC Capital Ideas after you print, click the “Back” button on your browser.

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November 27th, 2013

Solar Weather Activity

Posted at 1:00 AM ET

Solar weather is a space-related risk that has the potential to cause huge disruption to infrastructure and businesses around the world. Geomagnetic storm activity is not a new development but technological advancements and an increasingly interconnected global economy have resulted in increased vulnerability. Although extreme solar storms are relatively rare, there have been several notable recent events that have had a damaging impact on Earth. More are certain to occur in the future. Continue reading…

November 26th, 2013

Space Debris Risk: Part II, Collision Risk

Posted at 1:00 AM ET

Space debris poses a serious risk to operational satellites, particularly in the low earth orbit (LEO) and geosynchronous orbit (GEO). Indeed, debris amounts are increasing as objects continue to collide with one another, producing more fragments. According to the U.S. Strategic Command’s Space Surveillance Network, more than 20,000 objects above ten centimeters in size are currently orbiting Earth. Of these, only some 1,000 are active satellites. For items measuring between one and ten centimeters, around 500,000 particles are thought to be orbiting Earth. Estimates suggest tens of millions of other particles smaller than one centimeter are circulating the planet. All this material is traveling at several kilometers per second, sufficient velocity to cause significant damage to operational satellites.

Continue reading…

November 25th, 2013

Space Debris Risk: Part I, Orbital Regions

Posted at 1:00 AM ET

The most serious threat to high-value satellites and space infrastructures in the Earth’s orbit today is the risk of collision with other satellites or space debris. As more satellites are sent into the Earth’s orbit to provide services and technology we now take for granted, including global communications and broadcasting, air traffic control, weather forecasting and disaster management, the area is becoming increasingly cluttered with satellites (operational and defunct) and other fragments, enhancing the risk of collision. Although deorbiting strategies are in place for some modern satellites, tens of thousands of objects still circulate the planet at extremely high speeds.

Continue reading…

November 22nd, 2013

Week’s Top Stories: November 16 - 22, 2013

Posted at 8:00 AM ET

Climate Change: A Look into the Future:  Global climate models project a best estimate of a further two to four degree (Celsius) increase in the mean temperature of the Earth by the end of this century. Although this may seem insignificant on an intuitive level, the resulting impacts are of significant concern. Sea-level rise is the most significant threat for coastal areas as a result of melting glaciers. Apart from this threat, changing weather patterns will result in drought and inland flood threats for some areas. As a general principle of climate change, changes to the mean of meteorological extreme value distributions can be expected but an increase in tail thickness (or variability) is of greater concern. The day-to-day variability that we see today will likely expand.

Read the article >>

 

Update: Super Typhoon Haiyan: Haiyan is among the strongest tropical cyclones ever recorded, and meets or surpasses the strongest landfalling tropical cyclone in recorded history. Haiyan made landfall in the Philippines on November 8 near Guiuan, with estimated 1-minute wind speeds of 185-195 mph (300-315 km/hr).

Read the article >>

 

U.S. Severe Weather Outbreak, November 2013: A late-season severe convective outbreak has affected a large portion of the Midwest, Ohio Valley and Great Lakes including Southern Ontario. This widespread and violent outbreak has left absolute damage in communities such as Washington, Illinois. The outbreak occurred ahead of a strong cold front affecting the area.

Read the article >>

 

Indexation Clauses in Liability Reinsurance Treaties: A Comparison Across Europe: The Indexation Clause - otherwise referred to as the Stability Clause, Inflation Clause or Severe Inflation Clause (SIC) - is designed to maintain the real monetary value of the retention and (where applicable) the limit under a long-tail excess of loss reinsurance treaty over the duration of the claims payout pattern.

Read the article >>

 

Demand for Asia Pacific Catastrophe Reinsurance at a Record High in 2013: Total Asia Pacific catastrophe limit purchased in 2013 increased for the tenth year in a row, but once again failed to keep pace with strong gross domestic product growth in the region, according to a new report released today by Guy Carpenter.

Read the article >>

 

And, you may have missed…..

Causes of Supply Chain Disruption: The Business Continuity Institute’s 2012 Supply Chain Resilience Survey estimates that outsource service provider failure represents one of the most significant causes of supply chain disruption, only lagging behind adverse weather and technology (see Figure F-1). The particular danger represented by the supplier or service provider, especially if it involves an aspect of critical infrastructure, is that the failure is likely to cut across multiple industries and geographies. For example, the disruption caused by a component part of technology used by a power generator does not just shut the utility down - all commercial and residential operations grind to halt.

Read the article >>

 

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November 21st, 2013

Responding to Climate Change: Part II

Posted at 1:00 AM ET

An increasing number of (re)insurers are therefore adopting comprehensive climate change strategies to recognize the potential impact on their businesses. Investing in solutions that help predict the likely effects of global warming on the location, intensity and cost of weather-related catastrophes is critical to acquiring a better understanding of climate change risk.

Continue reading…

November 20th, 2013

Responding to Climate Change: Part I

Posted at 1:00 AM ET

Although there has been a significant increase in both economic and insured losses from natural catastrophes in recent decades, it is important to put these numbers in context. With the exception of coastal flood, inland flood and drought, the wholesale attribution of rising financial losses to an increase in hazard frequency can be misleading. Statements concerning the influence of global warming on loss trends would be better served if normalized by factors such as inflation, (per capita) gross domestic product, total insured value, population density and annualized property value. Indeed, the IPCC agrees that ignoring these factors leaves an upward trend in losses for purely economic reasons, notwithstanding any behavior in the peril. As an example, the recent “trend” in hurricane losses for the coastal United States loses clarity when normalized by inflation and population density. (1)

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November 19th, 2013

U.S. Severe Weather Outbreak, November 2013

Posted at 9:49 AM ET

severe-11-17-smallA late-season severe convective outbreak has affected a large portion of the Midwest, Ohio Valley, and Great Lakes including Southern Ontario. This widespread and violent outbreak has left absolute damage in communities such as Washington, Illinois. The outbreak occurred ahead of a strong cold front affecting the area. Numerous tornadoes have been reported, primarily in Indiana and Illinois, with some preliminary reports as high as an EF-4 rating on the Enhanced Fujita Scale. Reports of pea to quarter sized hail are more widespread, together with damaging winds.

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November 19th, 2013

Climate Change: A Look into the Future: Part II

Posted at 1:00 AM ET

Changing Precipitation Patterns - Drought and Wildfire

Global warming is also impacting drought and wildfire patterns around the world, with notable regional differences. The IPCC says that some regions of the world have experienced more intense and longer droughts (southern Europe and West Africa in particular) while other areas such as central North America and northwestern Australia have seen less frequent, less intense or shorter drought events.

Continue reading…