Insurance Industry Looking Hard At Climate Change

A recent paper in Science (abstract) examines the insurance industry's reaction to climate change. The industry rakes in trillions of dollars in revenues every year, and a shifting climate would have the potential to drastically cut into the profits left over after settlements have been paid. Hurricane Sandy alone did about $80 billion worth of damage to New York and New Jersey. With incredible amounts of money at stake, the industry is taking climate projections quite seriously. From the article: "Many insurers are using climate science to better quantify and diversify their exposure, more accurately price and communicate risk, and target adaptation and loss-prevention efforts. They also analyze their extensive databases of historical weather- and climate-related losses, for both large- and small-scale events. But insurance modeling is a distinct discipline. Unlike climate models, insurers’ models extrapolate historical data rather than simulate the climate system, and they require outputs at finer scales and shorter time frames than climate models."

Comments

Feynman coming home to roost

[harvey the nerd]

The CAGW graphs from models have repeatedly failed to predict current temperature trends, and others, like global methane in the atomosphere. Data has been repeatedly unused, misused and misreported in CAGW pal reviewed "literature". CAGW is a scam and pseudoscience. Go listen to Feynman about missed predictions. Get over it.

Re:Feynman coming home to roost

[SerpentMage]

Dude here is what you don't get. The insurance industry does not give a rats ass on the foaming mouths of those who are for or against climate change. The only thing that the insurance industry cares about is making money. Let's say that California is in an earthquake zone, which it is, the insurance company says, "hey guess what you are going to pay more for earth quake insurance." When the big one hits they really don't care because they should have covered their butts.

This is why if some hurricane were to flatten New York the only question that the insurance industry will ask is, "how much money will we make or NOT?" Thus by seeing that climate change is starting to hurt their pocket books you can be sure as American Greenbacks being green that they will begin to pay attention and charge you more for insurance.

Re:Who knew...

[Frosty Piss]

Would you rather your insurance company just hand out cash willy nilly?

Mo, of course not. But guess what? Insurance companies hire these people call - get this - Insurance Adjusters, who are - get this - "professionals" at evaluating claims.

But you know what? Most of them only look for reasons *NOT* to pay out on legitimate claims.

Oh wait 'your' emergency is somehow obvious and more important than everybody elses?

What an angry ignorant statement.

My claim is no more or less important than any other legitimate claim. Perhaps you need to look into how insurance companies deny legitimate claims?

Or perhaps you are one of these assholes that insurance companies hire to bullshit people out of making legitimate claims?

We're not talking about "entitlements" here, we're talking about paying for a service and not getting it.

But please, fuck off.

Hurricane Sandy....

[Ferretman]

....had nothing to do with "climate change" or "global warming" or whatever the AGW supporters are calling it this week. Even the climatologists said as much:

http://newswatch.nationalgeographic.com/2012/12/07/csu-researchers-say-sandy-wasnt-influenced-by-global-warming/

Ferret