Climate Change Experts Explain to Insurers They Don’t Understand Risk

By Eric Worrall – Re-Blogged From WUWT

You might think business stars like Warren Buffett have some idea of how to run an insurance company. But climate experts keep trying to explain that the focus insurers have on observational evidence is leading to insurers underestimating the risk of climate disasters.

Insuring your home may get harder and more expensive as climate change increases risks

ABC Radio National / By Antony Funnell for Future Tense

Our homes have become sanctuaries — places of refuge in the time of coronavirus. But they can’t protect us from all threats.

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The Next Giant Industry in Need of a Bailout

Well this is starting to become a trend.

Over the past few weeks, state governments across the Land of the Free have been feverishly proposing new legislation that will virtually guarantee the entire insurance industry is wiped out.

The root of the issue has to do with something called business interruption insurance.

Business interruption is a pretty common type of insurance that’s designed to protect business owners against a number of risks.

Sea Level Rise Preparation Plan Puts Pacifica Property Owners on Edge

By Brooks Jarosz – Re-Blogged From KTVU

The Fairway Park West neighborhood in Pacifica has been the place Jeff Guillet and his family have called home for nearly a decade, but he’s concerned his property and its value could soon be at risk with the passage of a new coastal plan.

The City of Pacifica is working on updating the Local Coastal Program plan or LCP, which includes preparing for sea level rise over the next 50 to 100 years. It involves making tough decisions to prepare for the worst case scenario. Guillet claims his entire neighborhood is located in a hazard zone, made up of any land west of Highway 1 in Pacifica.

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Federal Judge in Texas Rules Affordable Care Act is Unconstitutional

The Affordable Care Act was struck down by a Texas federal judge in a ruling that casts uncertainty on insurance coverage for millions of US residents.

The decision Friday finding the ACA unconstitutional comes just before the end of a six-week open enrollment period for the program in 2019 and underscores a divide between Republicans who have long sought to invalidate the law and Democrats who fought to keep it in place.

US District Judge Reed O’Connor in Fort Worth agreed with a coalition of Republican states led by Texas that he had to eviscerate the Affordable Care Act, the signature health-care overhaul by President Obama, after Congress last year zeroed out a key provision — the tax penalty for not complying with the requirement to buy insurance. The decision is almost certain to be appealed all the way to the Supreme Court.

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Yet Another Trillion-Dollar Unfunded Liability, California Wildfires Edition

By John Rubino – Re-Blogged From Dollar Collapse

Yesterday an entire California town burned down. Paridise, CA has (had) 27,000 residents and over 1,000 buildings, and now it’s pretty .

That fire and several others are still expanding across the state, threatening tens of thousands of homes. The sets of the TV show WestWorld are gone. Malibu has been evacuated. And dry, windy conditions persist, so the story is nowhere near over.

If this sounds familiar, it’s because massive, sometimes uncontrollable California wildfires are now an annual occurrence, due in part to gradual warming and persistent drought which combine to suck the moisture out of vegetation and turn the landscape into a tinderbox. Here’s a chart showing the recent take-off in the number of fires reported in the state (2013 was most recent year I could find, but the trend is clear – and since then the number of fires has apparently soared).

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Is Canada’s Health Care System Better Than Ours in the US?

By Carlin Becker – Re-Blogged From IJR

Health care is always on Americans’ minds, and the politics around keeping people insured and healthy, cutting costs and providing high-quality care remains a critical issue.

While some have argued for deregulating the health care industry, insisting less red tape and more competition would yield better results, others on the political spectrum have pushed for a government-run system reminiscent of our neighbors to the north — but is Canada’s health care system really better than ours?

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From CNN’s Non Sequitur Department: “Most economic forecasts have a big blind spot”

By David Middleton – Re-Blogged From WUWT

Definition of non sequitur

1 : an inference that does not follow from the premises; specifically : a fallacy resulting from a simple conversion of a universal affirmative proposition or from the transposition of a condition and its consequent

Guest ridicule by David Middleton

Honestly… I’m not picking on Real Clear Energy… But today’s headlines were a gold mine!

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Weekly Climate and Energy News Roundup #285

The Week That Was: September 23, 2017 Brought to You by www.SEPP.org

By Ken Haapala, President, Science and Environmental Policy Project

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Quote of the Week. “Long run is a misleading guide to current affairs. In the long run, we are all dead.”— John Maynard Keynes, the British Economist who earlier predicted that the extreme punitive demands of the Treaty of Versailles, the primary treaty ending World War I, would lead to disaster.

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Number of the Week: 99.998%

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A Concession? A work published in Nature Geoscience by noted British climate modelers led by Richard Miller has stirred considerable interest. Though some of the authors participate in the UN Intergovernmental Governmental Panel on Climate Change (IPCC), they made a concession that their models overestimate global warming. Many of those skeptical about the claim that global warming / climate change is controlled by carbon dioxide considered this to be a major event. Others are not too sure, and consider it may be a tactical ploy.

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Weather-Related Natural Disasters: Should We Be Concerned About a Reversion to the Mean?

By Roger Pielke Jr – Re-Blogged From Risk Frontiers

The world is presently in an era of unusually low weather disasters. This holds for the weather phenomena that have historically caused the most damage: tropical cyclones, floods, tornadoes and drought. Given how weather events have become politicized in debates over climate change, some find this hard to believe. Fortunately, government and IPCC (Intergovernmental Panel on Climate Change) analyses allow such claims to be adjudicated based on science, and not politics.  Here I briefly summarize recent relevant data.

Every six months Munich Re publishes a tally of the costs of disasters around the world for the past half year. This is an excellent resource for tracking disaster costs over time.  The data allows us to compare disaster costs to global GDP, to get a sense of the magnitude of these costs in the context of economic activity.  Using data from the UN, here is how that data looks since 1990, when we have determined that data is most reliable and complete.

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Rand Paul: Establishment Attempting to “Pull the Wool” over President’s Eyes on Obamacare Lite

By Onan Coca – Re-Blogged From Freedom Outpost

Senator Rand Paul (R-KY) recently sat down with Breitbart’s Matthew Boyle to discuss the bill that he calls “Obamacare-Lite,” and why it is that Republicans should be against it.

GOP leadership has long known that their “plan” for dealing with Obamacare would meet stiff resistance in Congress and on Main Street, which is why they did their best to hide the bill until the last moment possible. Now that it’s been made public, opposition has stiffened as conservatives begin to realize that this bill actually means that Obamacare will likely never be repealed, only retooled to satiate Republican opposition. How is it that the Republican Party, once opposed to socialized medicine, has now seemingly embraced some aspects of socialism? It’s a tremendous change from the way Republicans have been campaigning for the last 5 or 6 years, with their promises of repeal now giving way to simply offering mild adjustments to Obama’s healthcare disaster.

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Warren Buffet: Climate Not Impacting the Insurance Business

By Eric Worrall – Re-Blogged From http://www.WattsUpWithThat.com

2016-hurricane-drought

Warren Buffet has repeated his inconvenient message from last year, that climate has not affected his insurance business – though he is concerned about future climate change.

Warren Buffett says global warming is not impacting the way Berkshire writes insurance

Tom DiChristopher
Monday, 27 Feb 2017 | 3:34 PM ET

Berkshire Hathaway CEO Warren Buffett on Monday said he has not yet seen sufficient evidence that climate change is affecting weather events to a degree that would make him change the way his conglomerate’s insurance businesses write policies.

Events such as Hurricane Sandy have raised concerns that global warming is increasing the intensity and frequency of so-called superstorms.

“I have not seen anything yet that would cause me to change the way we look at evaluating quakes, tornadoes, hurricanes by atmosphere. Now, that may happen some day,” he told CNBC’s “Squawk Box.”

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IPCC, Government, and Insurance Enables Dangerous Behavior

By Dr. Tim Ball – Re-Blogged From http://www.WattsUpWithThat.com

“An ounce of prevention is worth a pound of cure.” – Benjamin Franklin

The claims of increasing disasters presented as inevitable by the Intergovernmental Panel on Climate Change (IPCC) provided opportunities for government interference and crony capitalism on a massive scale. Their actions ignored the realities and enabled unwise behavior by offering assistance and compensation if problems developed in areas where problems are well-known and inevitable.

The insurance industry is a major benefactor of this crony capitalism. They promoted the false IPCC claims on their web pages, sponsored documentaries, and did everything to exaggerate the threat. Look at the comments from the web page of Swiss Re.

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The Economist, Fossil Fuel Subsidies and ‘Climate Disaster’

By Andy May – Re-Blogged From http://www.WattsUpWithThat.com

I’ve been a subscriber to The Economist for years. It is one of the few mainstream media publications I still read. But, I found a very annoying article in the October 1, 2016 issue. The title and link are “Notes from the undergrowth.” It starts out with a false assertion that is easily debunked, but often stated:

Media myth #1

“DESPITE deluges in the South, droughts in the West and fires throughout national forests this year, the words “climate” and “change” have seldom been uttered together on the campaign trail.”

The UN World Meteorological Organization (WMO), Nature magazine, and the IPCC all have said extreme weather cannot be reliably linked to climate change.

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We’re All Hedge Funds Now

By John Rubino – Re-Blogged From Dollar Collapse

The most recent batch of economic stats was even more disappointing than usual, resulting in a cliff dive for the Atlanta Fed’s GDPNow US growth report:

It’s the same around the world: With European, Japanese and Chinese numbers coming in below (already lowered) expectations. The implication? Interest rates in major countries will either remain extremely low or fall further from here. With $11 trillion of government bonds already trading with negative yields, that’s a historically unprecedented prospect.

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Huff Post Explains the Insurance Business to Warren Buffett

By Eric Worrall – Re-Blogged From http://www.WattsUpWithThat.com

Warren Buffett doesn’t understand the insurance industry; Or so suggests the Huffington Post, in a rather hysterical critique of Buffett’s lukewarm acceptance of climate dogma.

Buffett’s case against the resolution boils down to this: “Thinking only as a shareholder of a major insurer, climate change should not be on your list of worries.”

First, he said, his company can handle any possible losses thanks to rising premiums. Because insurance policies are typically written for one year and repriced annually, Buffett’s company can hike premiums to better account for the heightened risk of climate change-driven losses.

Second, Buffett asserts that climate change has produced neither “more frequent nor more costly hurricanes nor other weather-related events covered by insurance.”

But eight of the 10 costliest hurricanes in U.S. history, in terms of insured losses, have occurred since 2000, according to the Insurance Information Institute. Nine of the 10 costliest floods in U.S. history, when measured by payouts from the federal government’s National Flood Insurance Program, also have occurred since 2000, according to the insurance group.

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Buffet, Climate Change and Pascal’s Wager

By Eric Worrall – Re-Blogged From http://www.WattsUpWithThat.com

Legendary businessman Warren Buffet has waded into the climate issue, with his latest letter to Berkshire Hathaway investors. Buffet seems to believe climate change is likely to be a serious issue – but he is cautious about this belief. Naturally everyone is interpreting Buffet’s words to suit their own position.

I am writing this section because we have a proxy proposal regarding climate change to consider at this year’s annual meeting. The sponsor would like us to provide a report on the dangers that this change might present to our insurance operation and explain how we are responding to these threats.

It seems highly likely to me that climate change poses a major problem for the planet. I say “highly likely” rather than “certain” because I have no scientific aptitude and remember well the dire predictions of most “experts” about Y2K. It would be foolish, however, for me or anyone to demand 100% proof of huge forthcoming damage to the world if that outcome seemed at all possible and if prompt action had even a small chance of thwarting the danger.

This issue bears a similarity to Pascal’s Wager on the Existence of God. Pascal, it may be recalled, argued that if there were only a tiny probability that God truly existed, it made sense to behave as if He did because the rewards could be infinite whereas the lack of belief risked eternal misery.

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What Two Risks From Rising Interest-Rates Could Each Trigger A New Global Crisis?

By Daniel R Amerman – Re-Blogged From http://www.Gold-Eagle.com

Why are interest rates at historic lows in the United States and around the world?

The widely-accepted answer is that very low interest rates exist for the purpose of stimulating economic growth and corporate profits, and are thereby helping the United States and other nations that are struggling with persistent and deep-rooted economic and unemployment problems.

However, if we accept this answer, then another question arises. If the US economy is booming while unemployment purportedly nears a mere 5% – then why do interest rates remain so low? Why the continuous drama about whether the Federal Reserve will slightly increase interest rates?

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Remove Agricultural Subsidies

By Chris Edwards – Re-Bloggd From http://www.Cato.org

Overview

The U.S. Department of Agriculture distributes between $10 billion and $30 billion in cash subsidies to farmers and owners of farmland each year..1 The particular amount depends on market prices for crops, the level of disaster payments, and other factors. More than 90 percent of agriculture subsidies go to farmers of five crops—wheat, corn, soybeans, rice, and cotton.2 More than 800,000 farmers and landowners receive subsidies, but the payments are heavily tilted toward the largest producers.3

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