As the majority of historical events illustrate, higher geomagnetic latitude countries such as the United States, Canada and Nordic countries are most at risk of suffering the effects of extreme solar storms. (1) However, lower geomagnetic latitude regions such as the Caribbean and more central and southern parts of Europe could also be affected during extreme events. Other factors such as geology, proximity to the coast and location and fragility of power grid infrastructure help determine the risk posed by solar activity.
Posts Tagged ‘US’
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. 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.
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.
Transferring risk through insurance is the last step in the risk management process. Traditional insurance products have fallen short of providing protection that is required as solutions for property, fidelity, general liability and professional liability only cover very clear and precise areas of risk. While there may be overlapping coverage for some cyber risks, various exclusions mean they generally do not cover privacy and cyber perils.
Tropical Storm Karen is poised to become the first named storm to hit the United States this season. Karen, as of 2PM Eastern Daylight Time, was 240 miles south-southwest of the mouth of the Mississippi River and 275 miles south-southeast of Morgan City, Louisiana. The storm is moving north-northwest at ten miles per hour. According to the NHC, a turn toward the north and a decrease in forward speed are expected by early Saturday, with a turn toward the northeast on Sunday.
The National Association of Insurance Commissioners’ (NAIC’s) Own Risk and Solvency Assessment (ORSA) goes into effect on January 1, 2015. Currently, many (re)insurers are in the process of developing and implementing their ORSA plans and approaches to the new regulation. They may be challenged over how much work has yet to be done and how best to do it. However, while some of the challenges are understandable, through “Business Management Integration” (BMI) there is an easier and more reliable way to approach this new regulation.
Figure F-4 highlights the relative share price performance of the reinsurance sector since January 2012, which can be considered the start of the new wave of convergence capital. The clear upward trend has benefited investors during this time.
No observable trends have been detected in the United States with either tornado or hail climatology, according to the scientific literature at large and the IPCC. The tornado events of the very active 2011 season are not unprecedented in history (Doswell et al., 2012). Such outbreaks have occurred before - in 1974, for example, and such outbreaks will occur again.
Changing weather patterns will cause changes to precipitation characteristics worldwide. According to the IPCC (IPCC SREX, 2012), “there is medium confidence that some regions of the world have experienced more intense and longer droughts, in particular in southern Europe and West Africa, but in some regions, droughts have become less frequent, less intense, or shorter, for example, in central North America and northwestern Australia.”