A Mortgage Bankers Association report says there is no doubt that climate change will impact the housing and housing finance industry, and although the magnitude of that impact is still unknown, the authors attempt to paint a frightening picture of the opportunities facing homeowners and those who serve them – financiers and insurers.
The report reviews what is known about climate change, the likely impacts on housing and housing finance, strategies that can mitigate or adapt to climate change, and what housing and finance companies housing can do to articulate and measure their exposure to climate change.
The report draws on many sources, including an outlook on flood risks generated by and for the insurance industry, and information that companies are encouraged to do through the Related Financial Information Working Group. to the climate. The TCFD is used as a guide by many insurers and insurance regulators.
“Coastal flooding provides perhaps the best example of how physical and transient hazards are likely to impact housing,” the report said. “The National Flood Insurance Program (NFIP), the primary flood insurance system in the United States, has many well-known challenges and shortcomings. The increase this century in insurance claims generated by climate change is likely to stretch NFIP to the breaking point, confronting homebuyers, lenders, GSEs and governments with a host of challenges. difficult questions. Additionally, independent flood risk estimates suggest that the NFIP currently excludes 2/3 of at-risk properties, suggesting the government’s current approach to disaster recovery.
Washington’s Insurance Commissioner Mike Kreidler is hosting his free Virtual Climate Summit 2021 on October 6.
Kreidler founded and chaired the National Association of Insurance Commissioners’ Climate Risk and Resilience Working. In June, he and California commissioner Ricardo Lara called on all insurers who are currently required to report to them on climate change annually to start reporting their climate risks in accordance with the TCFD.
The summit, according to its organizers, will highlight the latest scientific advances and best practices from the private sector, as well as regulatory approaches to tackle climate change.
Washington State Governor Jay Inslee is expected to make opening remarks, while Sec. General Ekhosuehi Iyahen of the Insurance Development Forum will deliver the keynote address on how to close the insurance protection gap globally.
Experts are expected to speak out on areas such as:
- Climate Change Science – Amy Snov, University of Washington Climate Impacts Group, and Anthony Leiserowitz, Yale Climate Change Communication Program.
- Best Practices from the Private Sector: Kraken NHL Team VP of Sustainability, Rob Johnson, Ana Pinheiro Privette with Amazon and Michelle Lancaster with Microsoft.
- The link between insurance and climate change: Thomas Leonardi, Yoon Kim with Moody’s and Jodi Hanson Bond with DevryBV.
- Public Sector Climate Resilience: Washington State, representing Joe Fitzgibbon.
This is Kreidler’s fifth climate summit. Visit the registration site to register or for more information.
Is climate dispute covered by insurance?
The question was posed by Carrier Management editor-in-chief Susanne Sclafane in a recent article on Insurance Journal on Thursday.
Sclafane does not stop there with questions. It also asks the question: Do liability insurance policies cover defendants in climate change disputes?
It relies on a 2011 Virginia Supreme Court ruling that Steadfast Insurance Co. had no obligation to defend and indemnify the insured AES or claims arising from a global warming lawsuit under of a commercial policy.
“Praedicat’s General Counsel Stephen Jones explained that AES was one of the defendants in an early climate change lawsuit, Kivalina v. ExxonMobil, deposited in 2008 by natives of Alaska whose village usually protected by the ice floe had been subjected to flooding during winter storms now that the ice had melted, ”the article said. “The US Army Corps of Engineers has determined that the entire village of Kivalina needs to be relocated due to the effects of climate change.
Jones said the insurance coverage case was based on the definition of occurrence in the commercial liability policy, which would include an accident but not an intentional act. The court ruled that because the damage caused by climate change was “a natural or likely consequence of greenhouse gas emissions”, it would not fall under the definition of occurrence. Instead, it would be seen as an intentional act, Jones explained.
British Prime Minister Boris Johnson told world leaders at the United Nations General Assembly in New York this week that humanity must “grow up” and face the problem of climate change.
He criticized an inadequate global response to climate change and urged humanity to “listen to the warnings of scientists”, citing the Covid-19 pandemic as “an example of dark scientists who are right,” reported TBEN.
“We still hold on with parts of our minds to the infantile belief that the world was made for our gratification and our pleasure,” Johnson said. “And we combine this narcissism with an assumption of our own immortality.”
“We think someone else is going to fix the problem because that’s what someone else has always done. We are destroying our habitats, over and over again, with the inductive reasoning that we have gotten away with so far, and as a result, we will get away with it again. “
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