*~Risk Management Special!~*
Due to the frequent number of natural catastrophes this year, there is a hot debate between scientists on whether these hazards are fueled by man and are a direct result from climate change. Business have claimed $67 billion from natural catastrophes, compared to $27billion in the same period last year.
Cliff Warman, head of the environmental practice for Europe, the Middle East and Africa, has developed a database of severe weather events on a global basis, which allows clients to assess whether a location is less vulnerable to a severe weather event than in the past, and to model the effects in terms of losses if it were affected. Catastrophe models have been used for some time to help price risk. However, no one could, or would, attribute a particular natural catastrophe to climate change, because if losses associated with a natural catastrophe were attributed to a population of emitters, then someone would be directly liable. In order to understand how the climate is changing, and price this into insurance and reinsurance, Mr Warman says trends need to be assessed through actuarial data.
Mr. Warman says the level of risk, and risk management, is already taken into account when it comes to environmental insurance, which covers events such as site emissions, environmental damage, pollution and risks to human health.
Article here:
No comments:
Post a Comment