I didn't click on it. Anyone click on it?
It was an interesting discussion, which is odd coming from Sneks.
How the would you know anything about "an interesting discussion" you in' mongrel, you?
Your mother is waitin'. Git!
Climate change is making some areas uninsurable.
https://flux.community/tik-root/2023...climate-risks/Each state regulates its insurance market, and some limit how much companies can raise rates in a given year. In California, for example, anything more than a 7 percent hike requires a public hearing. According to First Street, such policies have meant premiums don’t always accurately reflect risk, especially as climate change exacerbates natural disasters.
This has led companies such as Allstate, State Farm, Nationwide, and others to pull out of areas with a high threat of wildfire, floods, and storms. In the Southern California city of San Bernardino, for example, non-renewals jumped 774 percent between 2015 and 2021. When that happens, homeowners often must enroll in a government-run insurance-of-last-resort program where premiums can cost thousands of dollars more per year.
“The report shows that actuarially sound pricing is going to make it unaffordable to live in certain places as climate impacts emerge,” said David Russell, a professor of insurance and finance at California State University Northridge. He did not contribute to the report. “It’s startling and it’s very well do ented.”
Russell says that what’s most likely to shock people is the economic toll on affected properties. When insurance costs soar, First Street shows, it severely undermines home values — and in some cases erodes them entirely.
The report found that insurance for the average California home could nearly quadruple if future risk is factored in, with those extra costs causing a roughly 39 percent drop in value. The situation is even worse in Florida and Louisiana, where flood insurance in Plaquemines Parish near New Orleans could go from $824 annually to $11,296 and a property could effectively become worthless.
“There’s no education to the public of what’s going on and where the risk is,” said Porter, explaining that most insurance models are proprietary. Even the Federal Emergency Management Agency doesn’t make its flood insurance pricing available to the public — homeowners must go through insurance brokers for a quote.
First Street is posting its report online, and it also runs riskfactor.com, where anyone can type in an address and receive user-friendly risk information for any property in the U.S. One metric the site provides is annualized damage for flood and wind risk. Porter said that if that number is higher than a homeowner’s current premiums, then a climate risk of some kind probably hasn’t yet been priced into the coverage.
“This would indicate that at some point this risk will get priced into their insurance costs,” he said, “and their cost of home ownership would increase along with that.”
US companies don't insure the catastrophic risks in the US. That is generally picked up by foreign insurers, often German or Japanese, or anonymous offshore en ies in Bermuda.
The largest exposures get reinsured to other companies that specialize in accepting these kinds of risks. The overall risk is then split up among companies to limit the risk to a company further.
While dip s like Darrin and Snakeboi want to avoid the science, these companies know that the risk is increasing, and it is there ass on the line. They are pricing accordingly.
The free market knows what is coming, even if the "conservative" suckers don't.
https://actuaries.org.uk/media/qeyde...-scenarios.pdfmuch of the derided late 1990s climate change modeling has come up well short of the measurable change. another reason to disbelieve it, I suppose.
It's a crock-a- PERIOD
Sounds mild and bureaucratic, but economies don't work without insurance. If reinsurers refuse to back risk in areas threatened by climate change and downstream disasters like wildfires and floods, the burden will fall on countries and it will not be sustainable, economically or politically.
Actuaries do not lie or spin. When they warn the whole globe that the burden of risk will too great for insurance companies, the response should be urgent, because the consequences of doing nothing will not be mocked.
The consequences of doing nothing will not be mocked because
natural feedback loops will not be mocked. The atmosphere traps heat, and so does the ocean.
yeah. this is why Darrins grandchildren will hate him.
JP Morgan Chase doesn't seem to think climate change is pseudoscience. The associated risks have banks scrambling to protect their capital.
https://www.business-standard.com/in...1901366_1.htmlThe economic shocks inherent to the current trajectory of global warming may leave banks facing loan losses and impaired balance sheets. The Basel Committee on Banking Supervision has said climate change has the potential to affect “the safety and soundness of banks and the stability of the broader banking system.”
Until recently, banks have mainly focused on what so-called transition risks mean for their underlying business. These risks are tied to changes in asset values and other costs associated with the decarbonization of the global economy.
But as temperatures soar around the world, triggering a deadly tail of wildfires, storms and drought, banks are now being forced to pay greater attention to what are known as “physical risks.”
The potential losses from extreme events and long-term changes in weather patterns are becoming more prominent, forcing the financial industry to “sharpen its understanding” of physical risks, said Gianluca Cantalupi, head of climate, nature and social risk at JPMorgan Chase & Co.
And there’s little secret why. Here are just some of the recent calamities: Floods in Pakistan wiped out 2.2% of the country’s gross domestic product in 2022; Canada’s worst wildfire season on record in 2023 took a heavy toll on the local economy; and a crippling drought at the Panama Canal has impaired a waterway that handles $270 billion a year in global trade.
“These events are happening more and more frequently, and so we need to be educated—to be risk-aware,” Cantalupi said. “I need to know the physical risks the bank might face when making lending decisions: Will a semiconductor company face water stress? Will logging in certain provinces cause landslides that destroy factories or other infrastructure?”
To prepare for an increasing number of environmental disasters, JPMorgan has been adding personnel to assess such risks, including Cantalupi, who joined late last year from Credit Suisse. The bank is hiring catastrophe modelers that can estimate the potential impact of severe weather events on JPMorgan’s real estate portfolios.
JP Morgan and Citibank don't think climate change is pseudoscience, they think it's a risk to their bottom line.
The potential losses from extreme events and long-term changes in weather patterns are becoming more prominent, forcing the financial industry to “sharpen its understanding” of physical risks, said Gianluca Cantalupi, head of climate, nature and social risk at JPMorgan Chase & Co.
And there’s little secret why. Here are just some of the recent calamities: Floods in Pakistan wiped out 2.2% of the country’s gross domestic product in 2022; Canada’s worst wildfire season on record in 2023 took a heavy toll on the local economy; and a crippling drought at the Panama Canal has impaired a waterway that handles $270 billion a year in global trade.
“These events are happening more and more frequently, and so we need to be educated—to be risk-aware,” Cantalupi said. “I need to know the physical risks the bank might face when making lending decisions: Will a semiconductor company face water stress? Will logging in certain provinces cause landslides that destroy factories or other infrastructure?”
To prepare for an increasing number of environmental disasters, JPMorgan has been adding personnel to assess such risks, including Cantalupi, who joined late last year from Credit Suisse. The bank is hiring catastrophe modelers that can estimate the potential impact of severe weather events on JPMorgan’s real estate portfolios.
https://www.business-standard.com/in...1901366_1.htmlCitigroup Inc. said last month in its climate report that the physical impacts of climate change can cause a host of other worries, such as credit, liquidity and operational risks. To assess the vulnerability of its credit exposures to climate risks, the bank has introduced what it calls a Climate Risk Heat Map, which shows the business areas with the highest physical risks and transition risks.
According to Citigroup, its $15.8 billion oil and gas production loan book has a transition risk score of 4, the highest, and a physical risk score of 3. The two sectors with the highest physical risk scores are semiconductors and ports.
“It’s become a bigger issue,” especially over the past six months, said Andrew Karp, global head of the sustainable banking solutions group at Bank of America Corp. “There’s a growing worry about rising costs and, in some cases, a reduced availability of insurance and what that says about how climate risk will manifest into financial risks.”
JP Morgan and Citibank don't think climate change is pseudoscience, they think it's a risk to their bottom line.
The potential losses from extreme events and long-term changes in weather patterns are becoming more prominent, forcing the financial industry to “sharpen its understanding” of physical risks, said Gianluca Cantalupi, head of climate, nature and social risk at JPMorgan Chase & Co.
And there’s little secret why. Here are just some of the recent calamities: Floods in Pakistan wiped out 2.2% of the country’s gross domestic product in 2022; Canada’s worst wildfire season on record in 2023 took a heavy toll on the local economy; and a crippling drought at the Panama Canal has impaired a waterway that handles $270 billion a year in global trade.
“These events are happening more and more frequently, and so we need to be educated—to be risk-aware,” Cantalupi said. “I need to know the physical risks the bank might face when making lending decisions: Will a semiconductor company face water stress? Will logging in certain provinces cause landslides that destroy factories or other infrastructure?”
To prepare for an increasing number of environmental disasters, JPMorgan has been adding personnel to assess such risks, including Cantalupi, who joined late last year from Credit Suisse. The bank is hiring catastrophe modelers that can estimate the potential impact of severe weather events on JPMorgan’s real estate portfolios.
https://www.business-standard.com/in...1901366_1.htmlCitigroup Inc. said last month in its climate report that the physical impacts of climate change can cause a host of other worries, such as credit, liquidity and operational risks. To assess the vulnerability of its credit exposures to climate risks, the bank has introduced what it calls a Climate Risk Heat Map, which shows the business areas with the highest physical risks and transition risks.
According to Citigroup, its $15.8 billion oil and gas production loan book has a transition risk score of 4, the highest, and a physical risk score of 3. The two sectors with the highest physical risk scores are semiconductors and ports.
“It’s become a bigger issue,” especially over the past six months, said Andrew Karp, global head of the sustainable banking solutions group at Bank of America Corp. “There’s a growing worry about rising costs and, in some cases, a reduced availability of insurance and what that says about how climate risk will manifest into financial risks.”
JP Morgan and Citibank don't think climate change is pseudoscience, they think it's a risk to their bottom line.
The potential losses from extreme events and long-term changes in weather patterns are becoming more prominent, forcing the financial industry to “sharpen its understanding” of physical risks, said Gianluca Cantalupi, head of climate, nature and social risk at JPMorgan Chase & Co.
And there’s little secret why. Here are just some of the recent calamities: Floods in Pakistan wiped out 2.2% of the country’s gross domestic product in 2022; Canada’s worst wildfire season on record in 2023 took a heavy toll on the local economy; and a crippling drought at the Panama Canal has impaired a waterway that handles $270 billion a year in global trade.
“These events are happening more and more frequently, and so we need to be educated—to be risk-aware,” Cantalupi said. “I need to know the physical risks the bank might face when making lending decisions: Will a semiconductor company face water stress? Will logging in certain provinces cause landslides that destroy factories or other infrastructure?”
To prepare for an increasing number of environmental disasters, JPMorgan has been adding personnel to assess such risks, including Cantalupi, who joined late last year from Credit Suisse. The bank is hiring catastrophe modelers that can estimate the potential impact of severe weather events on JPMorgan’s real estate portfolios.
https://www.business-standard.com/in...1901366_1.htmlCitigroup Inc. said last month in its climate report that the physical impacts of climate change can cause a host of other worries, such as credit, liquidity and operational risks. To assess the vulnerability of its credit exposures to climate risks, the bank has introduced what it calls a Climate Risk Heat Map, which shows the business areas with the highest physical risks and transition risks.
According to Citigroup, its $15.8 billion oil and gas production loan book has a transition risk score of 4, the highest, and a physical risk score of 3. The two sectors with the highest physical risk scores are semiconductors and ports.
“It’s become a bigger issue,” especially over the past six months, said Andrew Karp, global head of the sustainable banking solutions group at Bank of America Corp. “There’s a growing worry about rising costs and, in some cases, a reduced availability of insurance and what that says about how climate risk will manifest into financial risks.”
JP Morgan and Citibank don't think climate change is pseudoscience, they think it's a risk to their bottom line.
The potential losses from extreme events and long-term changes in weather patterns are becoming more prominent, forcing the financial industry to “sharpen its understanding” of physical risks, said Gianluca Cantalupi, head of climate, nature and social risk at JPMorgan Chase & Co.
And there’s little secret why. Here are just some of the recent calamities: Floods in Pakistan wiped out 2.2% of the country’s gross domestic product in 2022; Canada’s worst wildfire season on record in 2023 took a heavy toll on the local economy; and a crippling drought at the Panama Canal has impaired a waterway that handles $270 billion a year in global trade.
“These events are happening more and more frequently, and so we need to be educated—to be risk-aware,” Cantalupi said. “I need to know the physical risks the bank might face when making lending decisions: Will a semiconductor company face water stress? Will logging in certain provinces cause landslides that destroy factories or other infrastructure?”
To prepare for an increasing number of environmental disasters, JPMorgan has been adding personnel to assess such risks, including Cantalupi, who joined late last year from Credit Suisse. The bank is hiring catastrophe modelers that can estimate the potential impact of severe weather events on JPMorgan’s real estate portfolios.
https://www.business-standard.com/in...1901366_1.htmlCitigroup Inc. said last month in its climate report that the physical impacts of climate change can cause a host of other worries, such as credit, liquidity and operational risks. To assess the vulnerability of its credit exposures to climate risks, the bank has introduced what it calls a Climate Risk Heat Map, which shows the business areas with the highest physical risks and transition risks.
According to Citigroup, its $15.8 billion oil and gas production loan book has a transition risk score of 4, the highest, and a physical risk score of 3. The two sectors with the highest physical risk scores are semiconductors and ports.
“It’s become a bigger issue,” especially over the past six months, said Andrew Karp, global head of the sustainable banking solutions group at Bank of America Corp. “There’s a growing worry about rising costs and, in some cases, a reduced availability of insurance and what that says about how climate risk will manifest into financial risks.”
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