Earth Observation and Global Change
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Earth Observation and Global Change April 22, 2008 AMS Public Private Partnership Forum Frank Nutter Reinsurance Association of America
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Earth Observation and Global Change. April 22, 2008 AMS Public Private Partnership Forum Frank Nutter Reinsurance Association of America. Catastrophic Losses: An Insurance Perspective. 2005 – $103 B 2004 – $ 45 B Of 20 most costly – 18 since 1990 1/3 of total insured risk is “cat” risk - PowerPoint PPT Presentation
Transcript of Earth Observation and Global Change
Earth Observation and Global Change
Earth Observation and Global Change
April 22, 2008
AMS
Public Private Partnership Forum
Frank Nutter
Reinsurance Association of America
2005 – $103 B
2004 – $ 45 B
Of 20 most costly – 18 since 1990
1/3 of total insured risk is “cat” risk
NFIP
Black Swans?
Catastrophic Losses: An Insurance PerspectiveCatastrophic Losses: An Insurance PerspectiveCatastrophic Losses: An Insurance PerspectiveCatastrophic Losses: An Insurance Perspective
Attribution of LossesAttribution of Losses Urbanization
Values at Risk
Population Shift
Weather / Climate
Assessing RiskAssessing Risk RMS
AIR
EQE
Hierarchy of PerilsHierarchy of Perils
Peak
Off Peak
Secondary
US Hurricane
California Earthquake
European Wind
Japanese Earthquake
Japan Typhoon
Tornado/Hail
Floods
Storm Surge
Coastal Flooding
Inland Flooding
Tsunami
Fire Following Earthquake
An Insurer’s “Cat” Strategy An Insurer’s “Cat” Strategy Quantification of Risk
Pricing Risk
Hedging
A Progressive (Re)insurer’s Strategy A Progressive (Re)insurer’s Strategy Assess client climate exposure Sell catastrophic reinsurance Provide risk transfer products Capital markets products Weather derivatives Investment in alternative energy Carbon trading and guarantees Footprint Employee incentives
Research NeedsResearch Needs Extend the historical record Land fall probabilities with wind speed Storm tracks Correlations, if any, between regions Extremes and outliers Hurricane power/size Sea level rise and storm surge Potential for abrupt events
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