Europe's companies are reporting impressive progress in their action on climate change – but not yet nearly the progress required to hit the 1.5°C target of the Paris agreement. ... Continue Reading »
Weather
OmniCAT® Risk Score: Severe Thunderstorm Risk Magnitude Index (SToRMi)
Over the last decade, a noteworthy increase in the frequency and severity of severe thunderstorm losses across the central and eastern United States has created a lack of profitability for carriers exposed to these perils. The impact has been amplified by outdated and antiquated catastrophe models lacking the ability to properly assess the current risk. Guy Carpenter’s Severe ... Continue Reading »
Wildfire: Understanding and Modeling the Risk
A confluence of excessive heat and lack of precipitation has led to a dangerous wildfire situation in the western United States. As of late September, 75 percent of the western region is in a state of moderate to exceptional drought. The drought, combined with high winds and lightning activity, precipitated the ignition and rapid spread of over 70 large fires in California, ... Continue Reading »
Understanding Flood Modeling
Virtually all catastrophe models are based on three fundamental components: hazard, vulnerability and financial impact. The hazard component describes the full range of risk by incorporating information on thousands of possible events simulated by extrapolating data from historical observations, according to Guy Carpenter colleagues Narathip Sutchiewcharn, Senior Vice President ... Continue Reading »
2020 Marsh & McLennan Climate Resilience Handbook
Climate change risk is, by its very nature, massively disruptive, and nations are responsible for an increasing share of the costs as communities and businesses rely more and more on state natural disaster relief. Put simply, insurance penetration is falling behind rising loss trends, and the situation is only going to deteriorate going forward, especially as climate change ... Continue Reading »
Planning for Natural Disasters Should Mesh with Pandemic Response
As the 2020 risk landscape continues to shift and the COVID-19 pandemic remains active heading into hurricane season, Guy Carpenter is collaborating with companies and governments to address these and other risks. During the global pandemic, many organizations may find it difficult to focus on any risks beyond COVID-19. But while the pandemic has slowed the global economy, ... Continue Reading »
Climate Change Is Now Driving Investments in Flood Resilience
As climate change and the associated increase in natural catastrophe events alters the contemporary risk landscape, there is now an opportunity for governments to partner with the (re)insurance market and put its expertise to work. After a flood event, companies need to take into account both the short-term imperatives to get up and running quickly and the longer-term need ... Continue Reading »
2020 Western North Pacific Tropical Cyclone Predictions: Details of Findings
The Guy Carpenter Asia-Pacific Climate Impact Centre (GCACIC) at the School of Energy and Environment, City University of Hong Kong, has released its 2020 predictions for tropical cyclone formations and landfalls using a regional climate model focusing on East Asia. This model uses information from a global climate prediction model made available in March 2020. ... Continue Reading »
June 1, 2020 Reinsurance Renewal: Hurricane Season Projections
While June 1 renewals were challenging, capacity ultimately came together to meet cedents’ needs and the market continued to function well. Similar outcomes are expected at July 1, and looking further ahead to January 1, 2021. The reinsurance sector has shown itself to be well versed at navigating market-changing events, and the overriding message following June 1 renewals is ... Continue Reading »
Hurricane Season: Elevated Storm Activity in the North Atlantic Basin
Current hurricane predictions indicate elevated storm activity in the North Atlantic basin. These include a forecast from The National Oceanic and Atmospheric Administration (NOAA) Climate Prediction Center of six to 10 hurricanes and three to six major hurricanes, compared to averages of six and two, respectively. ... Continue Reading »
