Natural disasters

Heavy rains in Rio Grande do Sul, Brazil's southernmost state, left entire cities under water and shut down its main airport indefinitely.

Climate-related disasters rank as just one of the leading factors.

With the retreat from globalization, insurers will have to adapt but it won't be easy.

The Net Zero Insurance Alliance will instead be replaced by the Forum for Insurance Transition to Net Zero (FIT), convened and led by the United Nations Environment Programme, according to a statement on Thursday.

There is a disconnect between today's insurance frameworks and the financing needed to invest in adaptation and mitigation measures.

The average premium for homeowners insurance in the US is expected to hit $2,522 by the end of the year, driven largely by intensifying natural disasters, rising reinsurance costs and higher fees for home repair, according to Insurify, a Massachusetts-based insurance-comparison platform.

Defections by U.S. states from NAIC's call for property market data reporting could widen the gap in insurance protection, climate risk solutions expert says.

Insured losses from natural catastrophes have been on a slow and steady rise.

The move comes just nine months after State Farm announced plans to stop issuing new coverage in the most populous US state.

Homeowners insurance rates in Florida have always been above the national average, but in recent years they have risen to unprecedented levels.

The strategy in question is tied to insurance-linked securities, which are dominated by catastrophe bonds (often dubbed cat bonds).

A preliminary calculation from Accuweather put the estimated losses at $9 billion to $11 billion after more than 10 inches of rain fell in the mountains west of Los Angeles, making it one of the wettest two-day periods in 147 years, AccuWeather said.

Catastrophe bonds, which last year formed the basis for the best-performing hedge fund strategy, have been delivering gains that trounce those of other high-risk fixed-income products.

While no single weather event caused more than $10 billion in losses for insurers last year, there were 37 thunderstorms that each cost at least $1 billion, according to a report by Aon Plc.

The Florida State Board of Administration Finance Corporation expects to sell at least $1.5 billion of municipal bonds to raise money for the Florida Hurricane Catastrophe Fund, according to a securities filing dated Jan. 19.

Ernst Rauch, chief climate scientist at Munich Re, says insurers are now having to rethink how they classify storms.

Insurance CEOs remain optimistic and committed to investing in emerging tech.

Insurers Chubb and QBE North America, as well as reinsurer Swiss Re, seek to educate insureds on how to mitigate risks of natural catastrophe damage.

Risk analytics essential to equip P&C insurers in California with the capabilities to precisely identify, evaluate and price risk.

Damage from severe thunderstorms — characterized by sudden downpours, fierce winds and hailstones — has been inching up by about 7% annually for 30 years, according to the analysis.