Catastrophe Bonds Based on Models that Often Underestimate Climate Risks

catastrophe bonds based on modeling underestimating climate risks

Catastrophe bonds and other insurance-linked securities, which powered last year’s highest-returning hedge fund strategy, are built on calculations that can underestimate a new breed of risk stemming from high-frequency events such as wildfires and thunderstorms, according to veteran investors.

Pricier Insurance Makes Sense as Climate Risk Grows, Chubb CEO Says

climate change and higher insurance rates

Surging insurance premiums in regions vulnerable to climate change make sense, and government efforts to hold back those increases won’t work in the long term, Chubb Chief Executive Evan Greenberg said.

Utility-Caused Wildfires Are Becoming a National Problem

Utilities increasingly cause of wildfires amid climate change

Large wildfires started by power lines and other utility equipment were, not that long ago, considered something that happened mostly in California. But these disasters are increasingly happening in many more places as forces turbocharged by climate change like extreme heat and drought wreak havoc on electric grids that were not built or upgraded to withstand them.

APCIA Opposes Federal Natural Catastrophe Backstop Bill

Federal backstop program for natural catastrophes

Federal solutions to a state-regulated industry should be carefully considered, as evidenced by the fact that federal taxpayers are currently at risk from $20.525 billion debt already owed by the National Flood Insurance Program, according to the APCIA.

New Poll Shows Voters Oppose CA Insurance Commissioner’s Home Insurance Plan By 2 to 1

CA Insurance reforms

A new poll finds that Insurance Commissioner Lara’s plan to allow insurance companies to increase premiums for all Californians in exchange for a promise to insure homeowners in higher wildfire risk areas is opposed by a 2 to 1 margin, 62% opposed to 30% in support