ok.... a few people from the AA community suggested this, and were considered anti Bush Bashers and so on and so forth,... ( from a previous thread I might add ). Well, look what's in today's paper!
Insurers joining global warming believers
Weather-related costs may become severe, some claim
By DEAN STARKMAN
Washington Post
RESOURCES
BY THE NUMBERS
The Securities and Exchange Commission is easing rules for insurance companies to raise capital, responding to concern that billions of dollars of hurricane-related losses could make it harder for insurers to pay victims' claims. Hurricane Katrina is likely to result in at least $34.4 billion in personal and commercial property loss claims, according to a survey of the nation's insurers by ISO's Property Claim Services Unit. Other numbers from early last week:
Electricity
•416,852 customers without power in Louisiana and Texas.
Oil and gas production
•4 refineries are off line because of Katrina-related damage.
•8 refineries are shut down as a result of Rita; four are in the process of restarting.
•90 percent of the Gulf's oil production is down from normal levels.
•72 percent of the Gulf's natural gas production is down from normal levels.
Telephone
•146,000 BellSouth lines out of service because of Katrina and Rita.
Gas prices
•Average per gallon for regular unleaded last week: $2.941
Companies
•BP Group said hurricane-related damage and disruption would cost the energy company $700 million in the third quarter.
Sources: AAA, Energy Department, Minerals Management Service, Reuters, Bloomberg News, BellSouth
The devastation and cost of Hurricane Katrina provided a new hook for a faction of the insurance industry that is trying to raise public awareness of global warming and push the topic onto the political agenda.
Some of the industry's largest companies have sided with environmental groups in recent years to argue that global warming exists and that man-made causes are adding to the severity and cost of natural catastrophes.
Although no insurer has cited global warming's increased risks as a reason for raising rates, some are funding their own research on the topic and, in the political realm, are supporting measures to reduce emissions.
The largest U.S. insurer, American International Group, says it recognizes the possibility that climate change might be increasing insurance losses, although it is waiting on more scientific proof of a link. The New York-based company is considering a policy of targeting investments toward companies involved in mitigating greenhouse gases.
"We take the possibility seriously and efforts to address it seriously," Chris Winans, an AIG spokesman, said.
The industry's interest goes beyond property damage caused by hurricanes.
Swiss Reinsurance Co., a giant Zurich-based provider of backup insurance to insurers, says climate change could increase the severity and spread of contagious diseases by extending the ranges of disease-carrying insects such as mosquitoes, altering markets for life and health insurance.
Also, new rules on industrial emissions could generate shareholder suits, changing the market for directors' and officers' liability coverage.
"You can always find a scientist somewhere who says the opposite of what other scientists are saying," said Ivo Menzinger, head of sustainability and emerging risks for Swiss Re. "But the majority of scientists acknowledge today that there is global warming, first of all."
He added, "What we are saying is that despite the uncertainty, the potential effects of climate change are such" that companies should err on the side of safety.
In Nebraska, a series of droughts in recent years have devastated crops and local economies, draining a tax-funded crop insurance program and leading insurers to ask whether global warming is implicated, said L. Tim Wagner, Nebraska's insurance commissioner.
Weather pattern changes
"It's more than hurricanes," Wagner said. "We're just seeing changes in weather patterns."
The insurance industry is split on the question. The American Insurance Association, which represents 400 property and casualty insurers, says the debate about global warming has not been resolved.
"The science isn't that definite," said David F. Snyder, the group's vice president and assistant general counsel. "There's no consensus in the insurance industry on the issue."
He said the group believes the industry's clout would be put to better use pressing for stricter land-use rules to keep development out of dangerous areas and for better building codes in marginal areas.
Europeans more sure
In general, European insurers are more apt to back the notion that the climate is changing and that governments should do something about it. Unlike its U.S. counterpart, the Association of British Insurers promotes public awareness about global warming and in June published a study concluding that climate change could cause annual losses from major storms to increase by two-thirds, to $27 billion, by the year 2080.
The study also said that under "high-emissions scenarios," in which carbon-dioxide levels double during the century, insurers would need to increase their capital by 90 percent to cover U.S. hurricanes and 80 percent for Japanese typhoons. The higher losses and capital costs could result in premium increases of 60 percent in those regions, the study said.
Environmental groups say the position of insurers and a few other corporations pushing for action on climate change has boosted the global-warming camp's credibility.
Ok... The insurance companies now agree with those wacky folks like Jesse Jackson!!!!
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