Posted on July 31, 2008 in Latest News
Enthusiastically working on the effects of the global warming on various sectors and industries, scientists and economic analysts inferred some findings. They concluded that global warming is leading the insurance sector into a crisis, where the re-insurers are following some new ways to price their insurance rates.
What is Computerized catastrophe modeling?
The ‘computerized catastrophe modeling’ that influences the impact global climate change might have on the intensity of hurricanes is considerably being used by re-insurers to price their insurance rates.
Why the practice has been criticized?
The practice has been criticized in the United States, partially due to the scientists not only having different opinions on the impacts global warming would have on the intensity of hurricanes, but also on whether climate change is a long-term phenomenon or just a cyclical warming of the oceans.
The officer says:
Chief Marketing Officer of ‘Island Heritage Insurance Company Ltd’, a leading property insurer of Cayman Islands, Nigel Twohey said, “re-insurers are very much aware of the effects of climate change on sea temperatures and are already on the work to make some provisions for this in pricing.”
Mr. Twohey also said, “in Caribbean, there is a no considerable increase in premiums that much for global warming. “Things to be in a clear shape to increase premiums, it will be possible if we have an active hurricane season,” he added.
Scientists Vs Hurricane Forecaster:
Scientific analysis confirms that sea surface temperatures are in a rising stage over the past century. But, the cause of the temperature increase is in a controversial phase. Some environmental scientists concern climate change occurred as a result of the greenhouse effect. Some others, like famous hurricane forecaster William Gray, considers climate change as a naturally occurring cycle of weather.
The disputes on the modeling and the impact of global warming on the intensity of storms have created a storm themselves. The governments and the scientists’ forums should take an initiative to propose a solution for this problem.
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