Natural disasters

There’s little faith in the global economic recovery accelerating, with officials and business leaders citing climate change and rising social tensions, alongside the pandemic, among their top risks, the World Economic Forum found.

The U.S. utilities sector could suffer annual losses of up to $4.1 billion as climate hazards threaten to batter the industry’s infrastructure, according to a new report.

The clock is ticking for banks, insurers and asset managers still providing support to oil, gas and coal producers. It’s not just the moral imperative—that fossil-fuel use is destroying the atmosphere and life on Earth with it. It’s that their financial health requires leaving such companies behind.

About 20 nations have signed on to a deal to stop funding foreign fossil fuel projects -- with a last-minute entry by Italy. But the impact of the accord is undermined by the absence of key countries like China.

The impending loss and federal probe are the latest blows for embattled PG&E. The company incurred a $1.09 billion third-quarter loss because of bankruptcy costs, state-mandated contributions to a wildfire-insurance fund, prior fire-season damages and other costs, according to a statement.

Insured losses from the storm, the second-most intense hurricane to hit the state of Louisiana, will probably range between $28 million and $30 million, the reinsurer said in a statement Tuesday. It estimated its own cost from claims related to the storm at about $750 million.

The Federal Emergency Management Agency in April announced the first significant update to the beleaguered National Flood Insurance Program, which covers about 5 million properties. Premiums have risen steadily, but the program is more than $20 billion in debt, thanks in part to rising seas and stronger storms. Now, a quarter of the participants will see lower costs, while the remainder will see premiums rise in increments as high as 18% annually.

In other news: Amerisure implements One Inc ClaimsPay tech; California drivers report distracted driving is getting worse; HSB adds social media income to home cyber protection.

Mexican startup Super, which offers coverage for earthquake property damages, plans to expand into hurricane insurance and possibly raise a fresh funding round next year, according to chief executive officer and founder Sebastian Villarreal.

“Spot,” created by Boston Dynamics, known for its viral robot videos, and customized for Farmers, a P&C insurer, is the first collaboration of its kind.

Deanne Criswell, the first woman to lead the Federal Emergency Management Agency, in April took over a 20,000-person operation exhausted by managing responses to disasters linked to global warming: wildfires and the 2020 hurricane season, the most active on record.

Nicholas is the Atlantic’s 14th storm in 2021. Half of the storms so far have hit the U.S., and Ida was the season’s worst, crashing into the Louisiana coastline before devastating New York with rain and floods that killed more than 40 people. On Monday, AIR Worldwide updated its projected losses from Ida, saying the storm probably caused $20 billion to $30 billion in insured losses. Earlier estimates were around $18 billion.

A $5 billion grant program in the infrastructure bill calls for utilities to harden power lines, including by taking them off of towers and burying them underground, but that option may be a poor fit for the Gulf Coast’s topography. It’s also expensive.

Several companies are using artificial intelligence and data analytics to better map properties for coverage in potential high-risk wildfire areas.

Tropical Storm Elsa made history by becoming the earliest fifth named storm on record this year. Insurers can proactively prepare for what’s predicted to be the most active hurricane season yet.

Storm-related reconstruction costs — a large share of which may be concentrated in the New York City area — are estimated to total $1.9 trillion for water damage and $8.5 trillion for wind damage.

As Hurricane Dorian bears down on the U.S., some health payers are moving to assist members in the wake of expected storm impact and lack of access to health services.

Mutual of Enumclaw’s bet on promoting a culture of innovation is paying off to the tune of millions in savings due to reduced fire losses, fewer snow-related claims and less customer attrition.

The technologies are top of mind for the carrier in its efforts to modernize underwriting and claims management, says Puneet Bhardwaj, SVP of digital analytics.

The majority of the funding is designated for Texas and Florida, with most of the commonwealth's needs to be addressed at a later date.