The heatwaves and the wildfires in the Northern Hemisphere in the summer of 2018 have put climate change at top of the agenda of media and politics. As we already see the adverse effects of rising temperatures, it is important to assess the impact on insurance-linked securities (ILS). In summary, the typical cat bond term of 3 – 5 years provides for continuous adjustments of pricing to encompass both climate effects and a globally increasing need for insurance. As ILS are an important mean to mitigate climate risks, we are likely to see more ILS solutions in the future. Read more.
The flooding from Hurricane Harvey was barely over when the world was alerted about Hurricane Irma. How could it be that the USA, after twelve years’ absence from major hurricanes, felt the impact of two record-breaking hurricanes over the course of one week? Read more.
A prognosis shows 70% probability for lower hurricane activity than normal, mostly due to El Niño, writes Entropics meteorologist Martin Hedberg. However, the main source of risk is the number of hurricanes that make landfall. Read more.
El Niño - Southern Oscillation (ENSO) is a global weather system greatly affecting local weather globally, which also affects the prevalence of cyclones in the Atlantic and the Pacific. With reasonably large probability we are approaching a sustained El Niño situation. Read more.
Typhoon Phanfone is gaining strength and moving further north, eventually affecting Tokyo. The wind speeds of the typhoon has increased somewhat faster than the forecasts indicated earlier this week. Phanfone has a fully developed eye and has convective bands in all quadrants of the circulating clouds. Intensity of the typhoon is 110 knots. Read more.