Home New mexico economy How will the P&C insurance economy withstand the impacts of climate change?

How will the P&C insurance economy withstand the impacts of climate change?

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In 2021, more than four in 10 Americans lived in a county affected by climate-related extreme weather, and 80% lived in places that experienced a multi-day heat wave.

The cost of these disasters has increased dramatically and so far in 2022 there is little relief on the horizon.

Historically, extreme weather events are less frequent in the first quarter of most calendar years, but Aon Benfield estimates The first quarter of 2022 was the sixth consecutive year with more than $10 billion in insured losses. Their first estimates for the first quarter of 2022 suggest that severe weather events globally have resulted in $32 billion in overall economic losses, of which $14 billion is covered by public and private insurers.

An estimated $6 billion of global economic losses in the first quarter of 2022 stem from weather events in the United States, primarily severe convective storms and tornadoes in March.

Damage from convective storms has become almost as costly as hurricanes, with average annual losses in the United States amounting to nearly $17 billion, with hail losses contributing up to 50-80%, according to RMS. severe convective losses in a given year. Warm temperatures and unusual changes in the jet stream lead to more extreme weather events like the devastating tornadoes of December 10 and 11, 2021, which crossed six states and included a single tornado with the longest path on record of approximately 250 miles.

According to AccuWeather, March, April and May tend to see the most powerful storms and large tornadoes, such as the EF4 tornado that hit Des Moines, IA on March 5-6. From March 21-23, a large tornado outbreak hit the southern region of the United States, with strong tornadoes near College Station, Austin and Houston, TX, metropolitan areas, and another supercell hitting the New York metropolitan area. -Orleans.

“Tornado Alley”, the region from the Southern Plains to the Northern Plains encompassing central Texas, much of Oklahoma, Kansas, Nebraska, South Dakota, parts of eastern Colorado and New Mexico and parts of Iowa, has historically seen…