{"id":899067,"date":"2021-08-25T14:51:14","date_gmt":"2021-08-25T20:51:14","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=899067"},"modified":"2021-08-25T14:51:19","modified_gmt":"2021-08-25T20:51:19","slug":"insurance-industry-snow-hail-wildfire","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/insurance-industry-snow-hail-wildfire\/","title":{"rendered":"Why Snow, Hail and Wildfire Are Expensive for Insurance Industry"},"content":{"rendered":"\n

Leslie Kaufman | Insurance Journal<\/a><\/p>\n\n\n\n

If you\u2019re having trouble wrapping your mind around the\u00a0spree\u00a0of natural catastrophes currently plaguing the world\u2014from deadly July floods in Germany and China to the wildfires still burning in Greece, California and Siberia \u2014you may be interested to know the professional risk calculators are too.<\/p>\n\n\n\n

Climate change is exacerbating extreme and freak weather events so rapidly that even the insurance industry<\/a> is struggling to keep up.<\/p>\n\n\n\n

Late last week, reinsurance giant Swiss Re AG\u00a0released\u00a0its mid-year insurance losses and the figures were the second-highest on record. Insurers had to cover $40 billion in losses caused by natural catastrophes. The previous ten-year average for the first half of the year is $33 billion.<\/p>\n\n\n\n

The insurance losses increased despite the fact that total economic losses from the natural disasters that they were based on actually decreased to $74 billion, which is down 31% from the year earlier.<\/p>\n\n\n\n

Martin Bertogg, head of catastrophic perils at Swiss Re, said that the industry had been challenged by what is known as \u201csecondary perils.\u201d That is, while the insurance industry has historically done a good job of modeling relatively rare but potentially devastating events such as earthquakes and hurricanes, it\u2019s battling to keep up with risks posed by snow storms, hail, tornadoes and wildfires. Those used to cause relatively minor damage but are increasingly morphing into something more costly. And that is a problem for companies, since many Americans have coverage for such events.<\/p>\n\n\n\n

Winter Storm Uri, which pounded Texas in February with snow and subfreezing temperatures, is a good example. Uri caused $15 billion in losses, making it the largest loss from a winter event in U.S. history, Swiss Re said.<\/p>\n\n\n\n

While the jury is still out on whether climate change is to blame directly for Uri\u2014the idea that warming makes the polar vortex unstable is not conclusive\u2014 the safest bet when the climate\u2019s changing is that weird things are going to happen a lot more. Severe weather including hail and tornados in Central Europe in June accounted for about $4.5 billion in losses and have been linked to climate change.<\/p>\n\n\n\n

Swiss Re thinks that this type of event is a trend they need to get on top of. \u201cThe insurance industry needs to upscale its risk assessment capabilities for these lesser monitored perils to maintain and expand its contribution to financial resilience,\u201d Bertogg said in its report on the losses.<\/p>\n\n\n\n

Of course, that\u2019s easier said than done, said Erdem Karaca, who overseas catastrophic perils in the Americas for Swiss Re. \u201cModels are less mature for secondary perils,\u201d he said, \u201ca peril like wildfire is also impacted by humans. Ninety percent of ignitions are caused by humans so it is difficult to quantify through models.\u201d<\/p>\n\n\n\n

Still, the industry is determined to get better. Over recent years modelers have gotten much more sophisticated at predicting flood risk, Karaca said. In the U.S., more sophisticated flood modeling has caused the Federal Emergency Management Agency, which handles 95% of residential flood insurance, to\u00a0initiate\u00a0its first new flood rate model in 50 years. Private insurance companies are also\u00a0racing\u00a0to deploying better models for fire prediction out West. For many people, better information will translate into higher premiums.<\/p>\n\n\n\n

In the meantime, catastrophic weather keeps happening. Those losses from Germany\u2019s floods aren\u2019t counted in this recent report, which covered January through June. They could be as much as $6.5 billion, Swiss Re estimated. And hurricane season has hardly hit its peak; in the Northern hemisphere that comes in the third quarter of the year. Tropical Storm Fred, which is passing over the Florida Panhandle, is expected to do comparatively little damage. But Grace and other storms are on their way, and losses are sure to mount.<\/p>\n","protected":false},"excerpt":{"rendered":"

Leslie Kaufman | Insurance Journal If you\u2019re having trouble wrapping your mind around the\u00a0spree\u00a0of natural catastrophes currently plaguing the world\u2014from deadly July floods in Germany and China to the wildfires still burning in Greece, California and Siberia \u2014you may be interested to know the professional risk calculators are too. Climate change is exacerbating extreme and… Continue reading Why Snow, Hail and Wildfire Are Expensive for Insurance Industry<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[10721],"tags":[9895,22],"class_list":["post-899067","post","type-post","status-publish","format-standard","hentry","category-insurance","tag-advise-consult","tag-insurance","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nWhy Snow, Hail and Wildfire Are Expensive for Insurance Industry - Advise & Consult, Inc.<\/title>\n<meta name=\"description\" content=\"Climate change is exacerbating extreme and freak weather events so rapidly that even the insurance industry is struggling to keep up\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/insurance-industry-snow-hail-wildfire\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Snow, Hail and Wildfire Are Expensive for Insurance Industry - Advise & Consult, Inc.\" \/>\n<meta property=\"og:description\" content=\"Climate change is exacerbating extreme and freak weather events so rapidly that even the insurance industry is struggling to keep up\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.myconstructionexpert.com\/blog\/insurance-industry-snow-hail-wildfire\/\" \/>\n<meta property=\"og:site_name\" content=\"Advise & Consult, Inc.\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\" \/>\n<meta property=\"article:published_time\" content=\"2021-08-25T20:51:14+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-08-25T20:51:19+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:site\" content=\"@adviseconsult\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/insurance-industry-snow-hail-wildfire\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/insurance-industry-snow-hail-wildfire\/\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\"},\"headline\":\"Why Snow, Hail and Wildfire Are Expensive for Insurance Industry\",\"datePublished\":\"2021-08-25T20:51:14+00:00\",\"dateModified\":\"2021-08-25T20:51:19+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/insurance-industry-snow-hail-wildfire\/\"},\"wordCount\":634,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"keywords\":[\"Advise & Consult\",\"insurance\"],\"articleSection\":[\"Insurance\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/insurance-industry-snow-hail-wildfire\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/insurance-industry-snow-hail-wildfire\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/insurance-industry-snow-hail-wildfire\/\",\"name\":\"Why Snow, Hail and Wildfire Are Expensive for Insurance Industry - Advise & Consult, Inc.\",\"isPartOf\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#website\"},\"datePublished\":\"2021-08-25T20:51:14+00:00\",\"dateModified\":\"2021-08-25T20:51:19+00:00\",\"description\":\"Climate change is exacerbating extreme and freak weather events so rapidly that even the insurance industry is struggling to keep up\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.myconstructionexpert.com\/blog\/insurance-industry-snow-hail-wildfire\/\"]}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#website\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/\",\"name\":\"Advise & Consult, Inc.\",\"description\":\"Construction Expert Witnesses\",\"publisher\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.myconstructionexpert.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#organization\",\"name\":\"Advise & Consult\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png\",\"contentUrl\":\"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png\",\"width\":162,\"height\":75,\"caption\":\"Advise & Consult\"},\"image\":{\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/\",\"https:\/\/x.com\/adviseconsult\",\"https:\/\/www.linkedin.com\/company-beta\/204526\/\",\"https:\/\/www.youtube.com\/user\/MrConstructionExpert\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg\",\"caption\":\"admin\"},\"sameAs\":[\"http:\/\/www.expertwitnessinconstruction.com\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Why Snow, Hail and Wildfire Are Expensive for Insurance Industry - Advise & Consult, Inc.","description":"Climate change is exacerbating extreme and freak weather events so rapidly that even the insurance industry is struggling to keep up","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.myconstructionexpert.com\/blog\/insurance-industry-snow-hail-wildfire\/","og_locale":"en_US","og_type":"article","og_title":"Why Snow, Hail and Wildfire Are Expensive for Insurance Industry - Advise & Consult, Inc.","og_description":"Climate change is exacerbating extreme and freak weather events so rapidly that even the insurance industry is struggling to keep up","og_url":"https:\/\/www.myconstructionexpert.com\/blog\/insurance-industry-snow-hail-wildfire\/","og_site_name":"Advise & Consult, Inc.","article_publisher":"https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","article_published_time":"2021-08-25T20:51:14+00:00","article_modified_time":"2021-08-25T20:51:19+00:00","author":"admin","twitter_card":"summary_large_image","twitter_creator":"@adviseconsult","twitter_site":"@adviseconsult","twitter_misc":{"Written by":"admin","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.myconstructionexpert.com\/blog\/insurance-industry-snow-hail-wildfire\/#article","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/insurance-industry-snow-hail-wildfire\/"},"author":{"name":"admin","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7"},"headline":"Why Snow, Hail and Wildfire Are Expensive for Insurance Industry","datePublished":"2021-08-25T20:51:14+00:00","dateModified":"2021-08-25T20:51:19+00:00","mainEntityOfPage":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/insurance-industry-snow-hail-wildfire\/"},"wordCount":634,"commentCount":0,"publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"keywords":["Advise & Consult","insurance"],"articleSection":["Insurance"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.myconstructionexpert.com\/blog\/insurance-industry-snow-hail-wildfire\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.myconstructionexpert.com\/blog\/insurance-industry-snow-hail-wildfire\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/insurance-industry-snow-hail-wildfire\/","name":"Why Snow, Hail and Wildfire Are Expensive for Insurance Industry - Advise & Consult, Inc.","isPartOf":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#website"},"datePublished":"2021-08-25T20:51:14+00:00","dateModified":"2021-08-25T20:51:19+00:00","description":"Climate change is exacerbating extreme and freak weather events so rapidly that even the insurance industry is struggling to keep up","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.myconstructionexpert.com\/blog\/insurance-industry-snow-hail-wildfire\/"]}]},{"@type":"WebSite","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#website","url":"https:\/\/www.myconstructionexpert.com\/blog\/","name":"Advise & Consult, Inc.","description":"Construction Expert Witnesses","publisher":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.myconstructionexpert.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#organization","name":"Advise & Consult","url":"https:\/\/www.myconstructionexpert.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png","contentUrl":"https:\/\/www.myconstructionexpert.com\/blog\/wp-content\/uploads\/2015\/11\/AC-Red-Logo.png","width":162,"height":75,"caption":"Advise & Consult"},"image":{"@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Advise-Consult-Inc-126949043996790\/","https:\/\/x.com\/adviseconsult","https:\/\/www.linkedin.com\/company-beta\/204526\/","https:\/\/www.youtube.com\/user\/MrConstructionExpert"]},{"@type":"Person","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/0a11abe008083d5fb19c2b0feefe7bd7","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.myconstructionexpert.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/b01e71b7acadd7657af782b7ad1a30cc?s=96&d=mm&r=pg","caption":"admin"},"sameAs":["http:\/\/www.expertwitnessinconstruction.com"]}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p2ztG6-3LT5","jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/899067","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/comments?post=899067"}],"version-history":[{"count":1,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/899067\/revisions"}],"predecessor-version":[{"id":899068,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/posts\/899067\/revisions\/899068"}],"wp:attachment":[{"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/media?parent=899067"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/categories?post=899067"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myconstructionexpert.com\/blog\/wp-json\/wp\/v2\/tags?post=899067"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}