Swiss Re on the wild hurricane season and the effects of extreme heat | Insurance business America
Severe weather events at both ends of the spectrum
reinsurance
By Kenneth Araullo
In its latest newsletter, Swiss Re highlighted current forecasts pointing to a very active 2024 Atlantic hurricane season and extreme heat severely impacting workers who make their living outdoors.
Forecasts point to a severe hurricane season, with experts from Colorado State University and the U.S. National Oceanic and Atmospheric Administration predicting favorable conditions for hurricane formation. Near-record sea surface temperatures and a transition from El Niño to La Niña have contributed to this forecast.
Ali Shahkarami, Global Head of P&C Solutions at Swiss Re, and Erik Lindgren, Head of Wind Hazards at Swiss Re, emphasized the importance of preparation. Regardless of the accuracy of the forecast, significant damage can occur if a hurricane hits an urban area – Hurricane Ian is a recent example.
Extreme heat is another major concern for 2024. In June, millions of Americans were under heat alert. Athletes could face high temperatures at the 2024 Olympics in France, with some raising concerns about safety.
Delhi, India, also recently recorded its highest temperature ever at 49.9 degrees Celsius (122 degrees Fahrenheit).
Swiss Re’s Public Sector Solutions (PSS) has developed insurance coverage to support individuals exposed to extreme heat. The Women’s Climate Shock and Insurance and Livelihoods Initiative, launched at the UN climate summit COP28, recently provided payments to 46,000 Indian women during damaging heatwaves.
This parametric insurance solution is part of efforts to strengthen resilience to heat extremes while advancing climate action aimed at achieving the net zero targets of the 2015 Paris Agreement.
In addition, the importance of risk knowledge for vulnerable farmers suffering from these conditions was examined. Morocco was given as an example, where around 40% of the population earns their living in agriculture. Drought therefore poses a major threat – modernization and innovation are required to adapt their approach to agriculture.
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2024-07-04 13:20:00
www.insurancebusinessmag.com
