Climate Change and the Insurance Industry

http://flickr.com/photos/that_chrysler_guy/8139133299/

As the entire eastern seaboard slowly recovers from its lashing by Sandy, insurance companies are bracing for the hurricane’s aftermath and the possibility of another Katrina-scale loss.  If there’s any major incumbent business with an incentive to publicly acknowledge the risks and costs of climate change, it’s the insurance industry, and especially the re-insurers — mega-corps that backstop individual insurance companies by pooling their risks globally.  These companies can do the math, and what they’ve seen over the last couple of decades is a steady upward trend in both the number of extreme weather events and the resulting insured losses that they’ve been on the hook to cover.  The situation is well summarized in a new report from Ceres, entitled Stormy Futures for U.S. Property/Casualty Insurers.  They suggest that insurers face an existential risk from climate change.

Continue reading Climate Change and the Insurance Industry

Corporate Climate Adaptation

The Carbon Disclosure Project is helping industry adapt to climate change.  It’s almost painfully ironic that some of their biggest customers are electrical utilities, mining, and, of course, oil and gas.  75% of the Alaska Pipeline is built on permafrost.  And it’s melting.  And they’re sure not gonna let the PR department keep them from shoring up the footings, just because they don’t believe it’s getting warmer.