Insurance Industry?No Consensus on Sandy? | Watts Up With That?

The insurance industry does not agree that Sandy was evidence of climate change.

Story submitted by Robert Bissett

I happened to be listening to NPR this morning through my pillow speaker. I was only half awake. Even so, the first balanced reporting about anything to do with climate change on NPR made an impression. Uncharacteristic, but refreshingly candid, admissions of truth were made.

The insurance industry is constantly updating their risk models as new information comes to light. Billions of dollars are at stake. Estimate the risk too high and you price yourself out of the market. Estimate too low and the volume of claims could bankrupt you. Insurance companies are highly motivated to discover what?s going on with the climate. Political correctness and flimsy climate models carry little weight in this arena.

The story began by quoting the head of Geo Risks Research: ?We believe that climate change is a big problem and will drive losses in the future.? The expected standard line. But, he also admitted that evidence Sandy was caused by climate change does not exist! At that point I began to listen more closely. Risk-management consultant Karen Clark pointed out that after Katrina ?some? predicted more powerful storms could be expected because of the warming climate, which she pointed out has not happened. The president of Eqecat, a risk-modeling firm, said we are actually in a low period of hurricane activity. Something you would never know from the media.

Maybe the judgment of insurance companies forced to face reality is a better measure of climate change than pal reviewed papers.

http://www.npr.org/2012/11/04/164185424/insurance-companies-rethink-business-after-sandy

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Source: http://wattsupwiththat.com/2012/11/04/insurance-industry-no-consensus-on-sandy/

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