{"id":652,"date":"2024-07-09T16:35:09","date_gmt":"2024-07-09T16:35:09","guid":{"rendered":"http:\/\/cherishedmemoriesstudios.com\/?p=652"},"modified":"2024-07-10T16:43:16","modified_gmt":"2024-07-10T16:43:16","slug":"triple-i-experts-speakon-climate-risk-resilience","status":"publish","type":"post","link":"http:\/\/cherishedmemoriesstudios.com\/index.php\/2024\/07\/09\/triple-i-experts-speakon-climate-risk-resilience\/","title":{"rendered":"Triple-I Experts Speakon Climate Risk, Resilience"},"content":{"rendered":"<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/insuranceindustryblog.iii.org\/wp-content\/uploads\/2024\/07\/GettyImages-2160198299-scaled.jpg\"><img loading=\"lazy\" width=\"1024\" height=\"512\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" alt=\"\" class=\"wp-image-18938 lazyload\" data-src=\"http:\/\/cherishedmemoriesstudios.com\/wp-content\/uploads\/2024\/07\/GettyImages-2160198299-1024x512-1.jpg\"><\/a><\/figure>\n<\/p>\n<p>Hurricane Beryl\u2019s rapid escalation from a tropical storm to a Category 5 hurricane does not bode well for the 2024 Atlantic Hurricane season, which is already projected to be of above-average intensity, warns Triple-I non-resident scholar <a href=\"https:\/\/www.iii.org\/about-us\/non-resident-scholars\/dr-phil-klotzbach\">Dr. Philip Klotzbach<\/a>.<\/p>\n<p>\u201cThis early-season storm activity is breaking records that were set in 1933 and 2005, two of the busiest Atlantic hurricane seasons on record,\u201d Dr. Klotzbach, a research scientist in the Department of Atmospheric Science at Colorado State University, recently <a href=\"https:\/\/www.nytimes.com\/2024\/07\/01\/weather\/hurricane-beryl-size.html?smid=nytcore-android-share\">told <em>The New York Times<\/em><\/a>.<\/p>\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\">\n<div class=\"wp-block-embed__wrapper\">\n<p><iframe loading=\"lazy\" title=\"Triple-I Non-Resident Scholar Dr. Phil Klotzbach&#039;s July \u201824 Atlantic Seasonal Hurricane Update\" width=\"960\" height=\"540\" src=\"https:\/\/www.youtube.com\/embed\/Qf476Ac2Eug?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<\/div>\n<\/figure>\n<p>The quick escalation was a result of above-average sea surface temperatures. A hurricane that intensifies faster can be more dangerous as it leaves less time for people in its path to prepare and evacuate. Last October, <a href=\"https:\/\/www.nytimes.com\/2023\/10\/27\/podcasts\/the-daily\/hurricane-otis.html?auth=login-google1tap&amp;login=google1tap\">Hurricane Otis<\/a> moved up by multiple categories in just one day before striking Acapulco, Mexico, as a Cat-5 that killed more than 50 people.<\/p>\n<p>After weakening to a tropical storm, Beryl made landfall as a Cat-1 hurricane near Matagorda, Texas, around 4 a.m. on July 8, according to the National Hurricane Center, making it the first named storm in the 2024 season to make landfall in the United States. &nbsp;Beryl unleashed flooding rains and winds that transformed roads into rivers and ripped through power lines and tossed trees onto homes, roads, and cars. Restoring power to millions of Texans&nbsp;could take days or even weeks, subjecting residents who will not have air conditioning to further risk as a sweltering heatwave settles over the state.<\/p>\n<p>Extreme heat was just one climate-related topic addressed by Triple-I Chief Insurance Officer <a href=\"https:\/\/www.iii.org\/about-us\/the-team\/dale-porfilio-fcas-maaa\">Dale Porfilio<\/a> in an interview with <em>CNBC\u2019s<\/em> \u201c<a href=\"https:\/\/email.axioshq.theinstitutes.org\/c\/eJyMUbuO3DAQ-xq7CcbQ05YKFwECA-nTByPNyFbglTaW9vaSrw_2gPTXsCEJgiStOnoWYeRVLkpYLYRRI1PuuZafmVajhDZWS_AyWDDoEgQrBCxGzI48BpfSeKwYgiUbvfdEgWzUwSLroN3ifHTRjXlVQhmxCC-1ENpNJmDQGg0SGu1xGYzA91zb8XvqB-fSeu6Pzm2q1z6e69H7vQ3666C2QW3P53OKJcQp1tugtrdMXAe1vSIGtYnlBW5QWzprpVx2OLBBPxhC3nduHXJpjwtLZNjxDrl8kA9oQHgy3OuV8pkr1AL83i--MTwZ-8EXxAPPk8vObTr67RzrtWPJf_H_YAK9kzbNMONswfAiAVOcIViVrKR5xuDHa_3FKdFgRM75o2HjQi97MiqS8Q7crDQYp2dAxgAuJGWRSOJCY-Mrc3vJI0kbvLTgpEhgDC4QKAWwaUGnApmU_NjXH1e-nwzfv3zDfP4Z--dufVvVvwAAAP__XW-nXw\">Last Call<\/a>\u201d on July 9. While most farmers are insured against crop damage due to heat conditions and homeowners insurance typically covers wildfire-related losses, Porfilio noted, a \u201cmore subtle impact is on roofs that we thought were built to a 20-year lifespan.\u201d<\/p>\n<p>When subjected to extreme heat, roofs can become more brittle and prone to damage from wind or hail.<\/p>\n<p>\u201cSo, you have to think about the roof coverage on your home insurance policy,\u201d Porfilio said.<\/p>\n<p>He also pointed out that flood risk represents \u201cone of the biggest insurance gaps in this country. Over 90 percent of homeowners do not have the coverage.\u201d<\/p>\n<p>Many people incorrectly believe homeowners insurance covers flood damage or that they don\u2019t need the coverage if their mortgage lender does not require it.<\/p>\n<p>In an interview on CNBC\u2019s \u201c<a href=\"https:\/\/urldefense.proofpoint.com\/v2\/url?u=https-3A__iii.us6.list-2Dmanage.com_track_click-3Fu-3Dcbc96c3d7a-26id-3Dce01124f18-26e-3Dcbc78ec98d&amp;d=DwMFaQ&amp;c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&amp;r=YlbzxI-FLAjSseb0sO-CZWb33FfhyqUCY9LxCAdRp7w&amp;m=A5hRqNJKUyHLNvb1_QSeM74XaAD8oQO9BWcB2nE9isSlUhMY4R5GkALZjKM20ZL4&amp;s=NGUHe2F6SGFvqAFOSSZ_-Q9zLaLizQ4QIyE0e6_JtJM&amp;e=\">Squawk Box<\/a>,\u201d Triple-I CEO <a href=\"https:\/\/www.iii.org\/about-us\/the-team\/sean-kevelighan\">Sean Kevelighan<\/a> discussed the potential impact of the predicted \u201c<a href=\"https:\/\/tropical.colostate.edu\/Forecast\/2024-06.pdf\">well above-average<\/a>\u201d 2024 season on the U.S. property\/casualty market.<\/p>\n<p>\u201cThis is what the insurance industry is prepared for,\u201d Kevelighan said. \u201cIt keeps capital on hand after writing policies to make sure that those promises can be kept.\u201d The P\/C industry has $1.1. trillion in surplus as of March 31, 2024.<\/p>\n<p>Kevelighan pointed out that the challenges to the industry go beyond climate-related trends, explaining how <a href=\"https:\/\/www.iii.org\/article\/legal-system-abuse-state-of-the-risk\">legal system abuse<\/a>, regulatory environments, shifting populations, and inflation are impacting insurers\u2019 loss costs.<\/p>\n<p>In Florida, for example, \u201cyou\u2019ve got over 70 percent of all homeowners insurance litigation residing in that state, whereas it represents less than 10 percent of the overall claims.\u201d<\/p>\n<p>He pointed out that Florida\u2019s insurance market has improved \u2013 with <a href=\"https:\/\/insuranceindustryblog.iii.org\/florida-homeowners-premium-growth-slows-as-reforms-take-hold-inflation-cools\/\">homeowners insurance premium growth<\/a> &nbsp;flattening somewhat \u2013 as a result of tort reform legislation and added that Louisiana\u2019s legislature addressed insurance reform during its most recent session.<\/p>\n<p>\u201cIn <a href=\"https:\/\/www.iii.org\/article\/trends-and-insights-californias-risk-crisis\">California<\/a>, insurers can\u2019t catch up with inflationary costs because of regulatory constraints,\u201d Kevelighan noted. \u201cThey are not able to model [climate risk] and are not able price reinsurance into their policies.\u201d<\/p>\n<p>California\u2019s wildfire situation is complex, and the state\u2019s <a href=\"https:\/\/www.iii.org\/article\/trends-and-insights-proposition-103-and-californias-risk-crisis\">Proposition 103<\/a> has hindered insurers\u2019 ability to profitably write homeowners coverage in that disaster-prone state. In late September 2023, California Insurance Commissioner Ricardo Lara announced a package of executive actions aimed at addressing some of the challenges included in Proposition 103. Lara has given the department a deadline of December 2024 to have the new rules completed.<\/p>\n<p><strong><em>Learn More:<\/em><\/strong><\/p>\n<p><a href=\"https:\/\/insuranceindustryblog.iii.org\/florida-homeowners-premium-growth-slows-as-reforms-take-hold-inflation-cools\/\">Florida Homeowners Premium Growth Slows as Reforms Take Hold, Inflation Cools<\/a><\/p>\n<p><a href=\"https:\/\/insuranceindustryblog.iii.org\/lightning-related-claims-up-sharply-in-2023\/\">Lightning-Related Claims Up Sharply in 2023<\/a><\/p>\n<p><a href=\"https:\/\/insuranceindustryblog.iii.org\/less-severe-wildfire-season-seen-but-no-less-vigilance-is-required\/\">Less Severe Wildfire Season Seen; But No Less Vigilance Is Required<\/a><\/p>\n<p><a href=\"https:\/\/insuranceindustryblog.iii.org\/accurately-writingflood-coverage-hinges-on-diverse-data-sources\/\">Accurately Writing Flood Coverage Hinges on Diverse Data Sources<\/a><\/p>\n<p><a href=\"https:\/\/insuranceindustryblog.iii.org\/irc-homeowners-insurance-affordability-worsens-nationally-varies-widely-by-state\/\">IRC: Homeowners Insurance Affordability Worsens Nationally, Varies Widely by State<\/a><\/p>\n<p><a href=\"https:\/\/insuranceindustryblog.iii.org\/legal-reforms-boost-florida-insurance-market-premium-relief-will-require-more-time\/\">Legal Reforms Boost Florida Insurance Market; Premium Relief Will Require More Time<\/a><\/p>\n<p><a href=\"https:\/\/insuranceindustryblog.iii.org\/2024-wildfires-expected-to-be-up-from-last-year-but-still-below-average\/\">2024 Wildfires Expected to Be Up From Last Year, But Still Below Average<\/a><\/p>\n<p><a href=\"https:\/\/insuranceindustryblog.iii.org\/csu-researchers-project-extremely-active2024-hurricane-season\/\">CSU Researchers Project \u201cExtremely Active\u201d 2024 Hurricane Season<\/a><\/p>\n<p><a href=\"https:\/\/www.iii.org\/article\/hurricanes-state-of-the-risk\">Triple-I Issues Brief: Hurricanes<\/a><\/p>\n<p><a href=\"https:\/\/www.iii.org\/article\/trends-and-insights-attacking-floridas-property-casualty-risk-crisis\">Triple-I Issues Brief: Attacking Florida\u2019s Property\/Casualty Risk Crisis<\/a><\/p>\n<p><a href=\"https:\/\/www.iii.org\/article\/trends-and-insights-californias-risk-crisis\">Triple-I Issues Brief: California\u2019s Risk Crisis<\/a><\/p>\n<p><a href=\"https:\/\/www.iii.org\/article\/legal-system-abuse-state-of-the-risk\">Triple-I Issues Brief: Legal System Abuse<\/a><\/p>\n<p><a href=\"https:\/\/www.iii.org\/article\/wildfires-state-of-the-risk\">Triple-I Issues Brief: Wildfires<\/a><\/p>\n<p><a href=\"https:\/\/www.iii.org\/article\/convective-storms-state-of-the-risk\">Triple-I Issues Brief: Severe Convective Storms<\/a><\/p>\n<p><a href=\"https:\/\/www.iii.org\/article\/flood-state-of-the-risk\">Triple-I Issues Brief: Flood<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hurricane Beryl\u2019s rapid escalation from a tropical storm to a Category 5 hurricane does not bode well for the 2024 Atlantic Hurricane season, which is already projected to be of above-average intensity, warns Triple-I non-resident scholar Dr. Philip Klotzbach. \u201cThis early-season storm activity is breaking records that were set in 1933 and 2005, two of the busiest Atlantic hurricane seasons on record,\u201d Dr. Klotzbach, a research scientist in the Department of Atmospheric Science at Colorado State University, recently told The New York Times. The quick escalation was a result of above-average sea surface temperatures. A hurricane that intensifies faster can be more dangerous as it leaves less time for people in its path to prepare and evacuate. Last October, Hurricane Otis moved up by multiple categories in just one day before striking Acapulco, Mexico, as a Cat-5 that killed more than 50 people. After weakening to a tropical storm, Beryl made landfall as a Cat-1 hurricane near Matagorda, Texas, around 4 a.m. on July 8, according to the National Hurricane Center, making it the first named storm in the 2024 season to make landfall in the United States. &nbsp;Beryl unleashed flooding rains and winds that transformed roads into rivers and ripped through power lines and tossed trees onto homes, roads, and cars. Restoring power to millions of Texans&nbsp;could take days or even weeks, subjecting residents who will not have air conditioning to further risk as a sweltering heatwave settles over the state. Extreme heat was just one climate-related topic addressed by Triple-I Chief Insurance Officer Dale Porfilio in an interview with CNBC\u2019s \u201cLast Call\u201d on July 9. While most farmers are insured against crop damage due to heat conditions and homeowners insurance typically covers wildfire-related losses, Porfilio noted, a \u201cmore subtle impact is on roofs that we thought were built to a 20-year lifespan.\u201d When subjected to extreme heat, roofs can become more brittle and prone to damage from wind or hail. \u201cSo, you have to think about the roof coverage on your home insurance policy,\u201d Porfilio said. He also pointed out that flood risk represents \u201cone of the biggest insurance gaps in this country. Over 90 percent of homeowners do not have the coverage.\u201d Many people incorrectly believe homeowners insurance covers flood damage or that they don\u2019t need the coverage if their mortgage lender does not require it. In an interview on CNBC\u2019s \u201cSquawk Box,\u201d Triple-I CEO Sean Kevelighan discussed the potential impact of the predicted \u201cwell above-average\u201d 2024 season on the U.S. property\/casualty market. \u201cThis is what the insurance industry is prepared for,\u201d Kevelighan said. \u201cIt keeps capital on hand after writing policies to make sure that those promises can be kept.\u201d The P\/C industry has $1.1. trillion in surplus as of March 31, 2024. Kevelighan pointed out that the challenges to the industry go beyond climate-related trends, explaining how legal system abuse, regulatory environments, shifting populations, and inflation are impacting insurers\u2019 loss costs. In Florida, for example, \u201cyou\u2019ve got over 70 percent of all homeowners insurance litigation residing in that state, whereas it represents less than 10 percent of the overall claims.\u201d He pointed out that Florida\u2019s insurance market has improved \u2013 with homeowners insurance premium growth &nbsp;flattening somewhat \u2013 as a result of tort reform legislation and added that Louisiana\u2019s legislature addressed insurance reform during its most recent session. \u201cIn California, insurers can\u2019t catch up with inflationary costs because of regulatory constraints,\u201d Kevelighan noted. \u201cThey are not able to model [climate risk] and are not able price reinsurance into their policies.\u201d California\u2019s wildfire situation is complex, and the state\u2019s Proposition 103 has hindered insurers\u2019 ability to profitably write homeowners coverage in that disaster-prone state. In late September 2023, California Insurance Commissioner Ricardo Lara announced a package of executive actions aimed at addressing some of the challenges included in Proposition 103. Lara has given the department a deadline of December 2024 to have the new rules completed. Learn More: Florida Homeowners Premium Growth Slows as Reforms Take Hold, Inflation Cools Lightning-Related Claims Up Sharply in 2023 Less Severe Wildfire Season Seen; But No Less Vigilance Is Required Accurately Writing Flood Coverage Hinges on Diverse Data Sources IRC: Homeowners Insurance Affordability Worsens Nationally, Varies Widely by State Legal Reforms Boost Florida Insurance Market; Premium Relief Will Require More Time 2024 Wildfires Expected to Be Up From Last Year, But Still Below Average CSU Researchers Project \u201cExtremely Active\u201d 2024 Hurricane Season Triple-I Issues Brief: Hurricanes Triple-I Issues Brief: Attacking Florida\u2019s Property\/Casualty Risk Crisis Triple-I Issues Brief: California\u2019s Risk Crisis Triple-I Issues Brief: Legal System Abuse Triple-I Issues Brief: Wildfires Triple-I Issues Brief: Severe Convective Storms Triple-I Issues Brief: Flood<\/p>\n","protected":false},"author":1,"featured_media":654,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[15],"tags":[],"_links":{"self":[{"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/posts\/652"}],"collection":[{"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/comments?post=652"}],"version-history":[{"count":2,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/posts\/652\/revisions"}],"predecessor-version":[{"id":655,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/posts\/652\/revisions\/655"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/media\/654"}],"wp:attachment":[{"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/media?parent=652"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/categories?post=652"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cherishedmemoriesstudios.com\/index.php\/wp-json\/wp\/v2\/tags?post=652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}