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Costs of Climate Change Touching Down All Around: Insurers
Climate Change: Insurers Confirm Growing Risks, Costs
As southern Indiana, Kentucky and other midwestern states woke Saturday to devastated communities and a rising death toll, the world again was treated to pictures and video of mother nature's ferocious power and the merciless power of her most precise and terrifying storm, the tornado. Most striking to some is the early arrival of this year's tornado season, which usually begins later in the spring and runs into summer. For climate scientists, who have long predicted longer or more powerful storms and less predictable seasons, the events are an affirmation that offer no comfort.
Jerry Vonderhaar, left, comforts Charles Kellogg after severe weather hit the Eagle Point subdivision in Limestone County, Alabama (Photograph: Jeronimo Nisa/AP) More striking this week, however, was a little noticed hearing -- just a day before these massively destruction storms -- where the nation's insurance and re-insurance companies came together to recognize the impact that climate change is having on their industry, a direct measure of the financial costs on US taxpayers and private businesses.
Reuters reports:
Powerful tornadoes raked across a wide swath of the Midwest and South on Friday, killing at least 28 people in four states and bringing the death toll to at least 41 from a week of deadly late-winter storms.
The twisters splintered homes, damaged a prison and tossed around vehicles across the region, leaving at least 13 people dead in southern Indiana, another 12 in neighboring Kentucky, two more in Ohio, and one in Alabama, officials said. In all, the latest line of storms battered a band of states from Ohio and Indiana on southward to Alabama and Georgia.
"We are no match for Mother Nature at her worst," Indiana Governor Mitch Daniels said in a statement, adding that he would visit the stricken southeast corner of the state on Saturday.
And the New York Times adds:
The storm systems stretched from the Gulf Coast to the Great Lakes and were so wide that an estimated 34 million people were at risk for severe weather, said Mike Hudson of the National Weather Service regional office in Kansas City, Mo. At one point, the storms were coming so fast that as many as four million people were within 25 miles of a tornado.
Why So Many Tornadoes?
According to the Associated Press:
While the main tornado season runs from spring to early summer, this year's early outbreaks show that tornadoes can form under a variety of conditions and strike during fall and winter, too. This year's mild winter and warm start to meteorological spring has upped the risk of dangerous storms.
"We've been in a very warm pattern all winter," said meteorologist Mark Rose of the National Weather Service in Birmingham, Ala. "Because it has been so mild, it increases our chances for severe weather."
That's the meteorologist explanation. Meteorologists as a professional class, however, have been very reluctant by and large to discuss the science behind global warming and climate change, as noted recently by Marvin Meados at the Huffington Post.
Climate scientists, though, are not, and their peer-reviewed research speaks volumes. Notably, a landmark 2007 study by NASA's Goddard Institute on Climate Science published this report, predicting larger and more violent thunderstorms and tornadoes in the United States as global warming trends continued. In part (emphasis added):
The central and eastern areas of the United States are especially prone to severe storms and thunderstorms that arise when strong updrafts combine with horizontal winds that become stronger at higher altitudes. This combination produces damaging horizontal and vertical winds and is a major source of weather-related casualties. In the warmer climate simulation there is a small class of the most extreme storms with both strong updrafts and strong horizontal winds at higher levels that occur more often, and thus the model suggests that the most violent severe storms and tornadoes may become more common with warming.
Climate Change: Insurers Confirm Growing Risks, Costs
In a press briefing on Thursday, representatives of the nation's top insurance companies, citing a year of history-making natural disasters and $1 billion-plus in damages, took a definitive stance, along with members of the US Senate, to confirm that the costs -- both to taxpayers and private businesses -- from extreme weather events will continue to climb due to the irrefutable march of global warming and climate change.
According to the Insurance Networking News, "representatives from The Reinsurance Association of America, Swiss Re and Willis Re and Ceres, a nonprofit organization that leads a national coalition of investors, environmental organizations and other public interest groups working with companies to address a variety of sustainability challenges, joined Sens. Bernie Sanders (I-Vt.) and Sheldon Whitehouse (D-R.I.) yesterday to discuss the growing financial impact of global warming."
Here's a short video segment from Thursday, Cost of Climate Change, featuring Sanders:
“From our industry’s perspective, the footprints of climate change are around us and the trend of increasing damage to property and threat to lives is clear,” said Franklin Nutter, president of the Reinsurance Association of America. “We need a national policy related to climate and weather.”
“As a member of the global insurance industry, we have witnessed the increased impact of weather-related events on our industry and around the world,” said Mark Way, head of Swiss Re's sustainability and climate change activities in the Americas. “A warming climate will only add to this trend of increasing losses, which is why action is needed now.”
Cynthia McHale, the insurance program director at Ceres, issued a more unequivocal statement: “Our climate is changing, human activity is helping to drive the change, and the costs of these extreme weather events are going to keep ballooning unless we break through our political paralysis, and bring down emissions that are warming our planet. If we continue on this path, extreme weather is certain to cause more homes and businesses to be uninsurable in the private insurance market, leaving the costs to taxpayers or individuals.”
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Bill McKibben: A Link Between Climate Change and Joplin Tornadoes? Never!
Last year, in the wake of another outbreak of powerful and deadly tornadoes, author and climate activist Bill McKibben took up his pen to address the often cited reality that no single weather event, by itself, can be unequivocally attributed to climate change. This, however, is a fact that avoids the uncomfortable truth that climate patterns are shifting -- and will continue to shift -- as global temperatures rise. The patterns are unmistakable, and we avoid them at our peril. His tongue-in-cheek approach did not diminish his message, and it works as well today in the wake of renewed tragedies as as it did in the wake of the Joplin tornado last year. He wrote:
Caution: It is vitally important not to make connections. When you see pictures of rubble like this week’s shots from Joplin, Mo., you should not wonder: Is this somehow related to the tornado outbreak three weeks ago in Tuscaloosa, Ala., or the enormous outbreak a couple of weeks before that (which, together, comprised the most active April for tornadoes in U.S. history). No, that doesn’t mean a thing.
It is far better to think of these as isolated, unpredictable, discrete events. It is not advisable to try to connect them in your mind with, say, the fires burning across Texas — fires that have burned more of America at this point this year than any wildfires have in previous years. Texas, and adjoining parts of Oklahoma and New Mexico, are drier than they’ve ever been — the drought is worse than that of the Dust Bowl. But do not wonder if they’re somehow connected.
If you did wonder, you see, you would also have to wonder about whether this year’s record snowfalls and rainfalls across the Midwest — resulting in record flooding along the Mississippi — could somehow be related. And then you might find your thoughts wandering to, oh, global warming, and to the fact that climatologists have been predicting for years that as we flood the atmosphere with carbon we will also start both drying and flooding the planet, since warm air holds more water vapor than cold air.
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Show AllLooked him up, here's a denialist blog cite from your friend Michael Lewis AKA Hayduke2000:
"Evidently, grassroots meteorologists are insufficiently toeing the line when it comes to laying weather patterns at the feet of "global warming." Someone unnamed wants them to publicly join the global warming bandwagon in blaming human CO2 emissions for observed climate change, ignoring the uncertainty of climate science, ignoring all evidence to the contrary, insisting on one single simplistic explanation for climate change.
"TeeVee weather presenters, even those who are qualified meteorologists, are the most visible source of public information about weather and climate. They appear daily to billions of people, and whether or not it is a good idea, their "opinions" about climate change carry a lot of weight in popular culture. It's no wonder that those whose interests are served by spreading fear of climate change in support of a predetermined economic outcome are after these "grass roots" who fail to tremble in fear of natural climate phenomena.
"This is not grass roots, this is Big Money come to the service of shadowy figures in the background of international politics and economics. Who profits from fear of climate change? Who is funding this program to gag independent meteorologists and TeeVee weather presenters?
"This is part of a concerted behind-the-scenes program funded by monied interests to subvert all elements of environmental awareness and activism to the cause of money and power, political and economic influence. Global warming hyperbole has been used to discredit free-thinking, independent scientific research, free expression, free thought and free action. The individuals and corporations funding this movement are laying the ground work for society controlled by corporate-government-military oligarchies to maintain the economic and political status quo."
Thank you for copying my blog and reposting. I appreciate your efforts to spread my message.
Now would you care to comment on the content of this blog post? Would you also be honest enough to admit that my blog covers many other topics and is therefore not a "denialist" blog? (Whatever that means.)
AGW:
"There is no detectable human fingerprint in today's observed climate variation."
You are so far gone. Goodbye.
It may be that if insurance companies ran for president and congress, we might have a better chance of having sane and rational policies concerning climate change.
The White House and Congress might at the very least recognize anthropogenic climate change as a fact.
I agree, but they would also very likely have Homeland Security round up and disappear all the old and sick people and disappear them before they had a chance to file claims. Just because a corrupt industry recognizes a problem, it doesn't mean they intend to help ... it means they will quickly change how they do business so they are not on the hook for climate related claims.
Just irony, Caleb!
You should know that by now from what I have been posting here on a nearly daily basis. At any rate, there is no disagreement on this score between you and me.
I'm sure his plan involves a free market solution endorsed by the Better Business Bureau.
I've got an idea! Have the government declare the tornadoes to be terrorists, then send the CIA in to infiltrate every tornado. Put a trained team into the center of every tornado! As fast as a tornado forms, send in the CIA!
That might take care of at least one problem and isn't any crazier than any other government program of the new century.
And imagine a nuclear reactor directly in the path of one.
"No one ever could have imagined..."
Much like tornadoes that individually can't be tied to climate change, the nuclear disasters that show up like clockwork every 20-25 years can't be tied to inherently dangerous technologies. The problem occurs when environmental extremists try to suggest that nuclear is unsafe based on unfortunate accidents that are unique and not likely to ever occur again.
Thank god the insurance companies haven't fallen for the environmental terrorists' ploys. They have refused to get caught in the middle between the environmental terrorists and the nuclear industry by not insuring nuclear plants. I'm sure that in the future, they will deny these left wing crackpots an issue by not providing future coverage for weather related events.
We are in safe hands.
http://www.nrc.gov/info-finder/reactor/
And another zillion of them are in the New Madrid Fault area, which could let loose a massive earthquake at anytime.
Imagine an earthquake followed by twisters, like Fukushima only drier.
Originally, "insurance" was a group of neighbors banding together, forming a co-op, agreeing to each pay in a small amount on a regular basis, so the pool of money would be there if any one suffered a disaster.
When those pools of money got big, they attracted predators...
Back in the mid 1980s a midwest meteorologist (weatherman) published a report showing that reported tornado activity had roughly doubled every decade from the 1920s. This was "rationalized" as a problem of perception, for example it was claimed that more people were paying attention in the later years even though demographically that was almost impossible (e.g., depopulation of rural areas, thus fewer potential witnesses...). Another issue is definition. Are all "twisters" tornadoes? Must they touch the ground? Etc.
Insurance companies rely for profit on two primary variables: actuarial/statistical science to determine premiums and who can be covered, and their investment portfolio. If the weather data are not predictive to some extent, they are useless in determining premium rates. If the investment portfolio tanks, they will try to compensate, sometimes by raising rates. Property insurance is still largely regulated by the states, and that regulation is notoriously corrupt, as the Frankel case a few years ago ought to have made clear beyond a doubt. One of the advantages of growing old is that one can compile a memory instead of relying on the obfuscations of those, like Hayduke, who have an agenda. Remember that anyone with a mortgage must pay for homeowner's insurance, a racket. -30-I have lived in San Diego, for 3 decades, and in the last few years, have found it unsettling, how on some days, our high temperature here, has been about the same as what my parents are experiencing in an area of the country, that would normally have seasonal high temperatures ranging between the 20s and low 40s. Low 40s, for highs in january and february used to be considered quite warm.
Interesting to see though, how global warming denialists, are all over this already, appealing to the natural ill feelings toward insurance companies, in order to create a whole new genre of spin. This one goes like this from the propagandistic orifice of the global warming denialist…"those darn insurance companies are jumping on the global warming band wagon to jack up rates".
That bullshit is just SO EASY to see through.
Thanks for not being bamboozled by the bullshit.
I accept both sides of the argument, first that insurance is such a racket these days, and second that the insurance companies hate climate change because all of the disasters are more likely to hit all at once.
As we found when Katrina flooded New Orleans, insurance companies simply aren't covering flood damage these days. The insurers are pretending to the banks that they cover floods but they are lying in the fine print. Other mass disasters that the insurance companies won't touch are nuclear wars and nuclear power plant meltdowns.
After Katrina, we saw the spectacle of insurance companies fighting thousands of iffy home insurance claims because the house was destroyed by water (which the fine print says is not covered) before it was destroyed by wind (which is insured), or perhaps the destruction was simultaneous (see you in court!)
Insurance companies will make reluctant allies. Yes, they will miss being able to extract billions in profits from us for flood insurance, for crop insurance and so on, so they might pay lip service to climate change. Do we want their two bit help? Meh! Depends on what they actually do for us.
In the meantime many of us are going to celebrate our relatively low gasoline costs (low gasoline taxes drive high consumption) by paying 10% more per year, every year, for home insurance. The left hand sticks the cash in our pocket with great fanfare, while the right hand steals money out of our other pocket.
March 1 - http://www.youtube.com/user/dutchsinse#p/u/7/H40B8LpDjmY
March 3 - 20 tornados? more?
Didn't the same guy, Dutch Sinse, do a lot of analysis of the BP oil spill and the weather patterns and ocean currents?
"While the main tornado season runs from spring to early summer, this year's early outbreaks show that tornadoes can form under a variety of conditions and strike during fall and winter, too."
That set up, the next paragraph, in which the "professional class" meteorologist, contributes to the truth being rain wrapped, so to speak, in regard to global warming being the cause of the "very warm pattern all winter".
I was talking to my mom a few days ago, about that "very warm pattern all winter", and how disturbing it has been to her and my dad, that over the last few years, especially this year, late spring like temperatures have arrived in late December, January, and February. Our large yard, full of maples, sweet gum, elm, redbud, peach, and apple trees.....have all budded way too soon, and are all at risk of getting zapped by a freeze that is still sure to come before the normal arrival of spring.
She joked darkly, of how the tornado that had just hit Branson Mo., where they love to go hear bluegrass music at the smaller older theaters that have survived the invasion of the more commercial larger venues that invaded that unique town. It had missed some of their favorite spots by a few blocks, just like the EF5 had missed our home in Joplin, by four blocks.
My mom and dad aren't global climatologists, but they know that things are out of whack. My mom commented wistfully, how much she looks forward to that change of the season, where the trees are budding, and her perennial bulbs are sprouting, with the arrival of the first song birds, but in recent years, the change has been all messed up into non distinctive blur.
Leave it to global warming denialists to miss that tragic poetry.
As noted above by another poster: Similarly with military and "intelligence" strategic planners. Even in published documents, both the US military and the CIA have been upfront about the reality of climate change.
Also like the insurance industry, that does NOT mean they are "on our side!" Much of the military and CIA analysis relates to the likelihood of food insecurity and civil unrest as climate disruption worsens. It certainly has not led the Pentagon to ramp down their use of oil (US military is the top greenhouse gas producing institution in the world). BUT, their assessment of the science and of the on-the-ground changes are somewhat immune to the politicized argumentation of the denialist interests.