Insurance today relies on models to predict earthquaketriggered
losses on the US west coast. But there is a lurking danger. Many do not consider the variability of model outcomes. As research by Swiss Re reveals, this can lead to an underestimation of ensuing losses.
The scale of increased earthquake activity in Oklahoma over recent years is unparalleled. Since 2008 the number of magnitude 3.0 earthquakes per year has grown from roughly 2 per year to an average of nearly 3 per day. This now makes Oklahoma the most seismically active of the lower forty-eight states. It’s highly likely that this dramatic rise in earthquake occurrence is largely a consequence of human actions.Download
Flood poses a risk to individuals, business and the public sector. Severe events in Canada can cause losses exceeding CAD 13 billion, with less than half of these covered by insurance. This leaves many families without the necessary funds to rebuild their lives
if disaster strikes. In addition it delays economic recovery in the affected areas ― an effect that hits even those whose homes are still standing. Concerted action across the risk management chain that involves all key stakeholders ― government, the insurance industry and homeowners ― can strengthen flood resilience in Canada.
Are property losses prompting more casualty claims? Consider the possible correlation as we examine some of the largest, more recent casualty losses.Download
Swiss Re catastrophe experts use a simple and logic-based methodology to construct scenarios showing the potential social and financial impact of a tornado in the heart of a major US city.Download