Swiss Re on the wild hurricane season and extreme heat's impact

Swiss Re on the wild hurricane season and extreme heat’s impact | Insurance Business Australia

Reinsurance

Swiss Re on the wild hurricane season and extreme heat’s impact

Severe weather events on both ends of the spectrum

Reinsurance

By
Kenneth Araullo

In its latest newsletter, Swiss Re highlighted recent forecasts that indicate a very active 2024 Atlantic hurricane season and the extreme heat that is severely impacting workers earning a living outdoors.

Forecasts indicate a severe hurricane season, with experts from Colorado State University and the US National Oceanic and Atmospheric Administration predicting conditions favorable for hurricane formation. Near-record sea surface temperatures and a transition from El Niño to La Niña have both contributed to this outlook.

Ali Shahkarami, Swiss Re’s global head of P&C Solutions, and Erik Lindgren, Swiss Re’s wind perils lead, emphasized the importance of preparedness. Regardless of forecast accuracy, significant damage can occur if a hurricane makes landfall in an urban area – Hurricane Ian being one recent example.

Extreme heat is another significant concern for 2024. In June, millions of US residents were under heat alerts. Athletes at the 2024 Olympics in France may face high temperatures, with some expressing concerns about safety.

Delhi, India, also recently recorded its highest-ever temperature at 49.9 degrees Celsius (122 degrees Fahrenheit).

Swiss Re’s Public Sector Solutions (PSS) has developed coverage to support individuals facing extreme heat. The Women’s Climate Shock and Insurance and Livelihoods Initiative, launched at the UN’s COP28 climate summit, recently provided payments to 46,000 Indian women during harmful heatwaves.

This parametric insurance solution is part of efforts to strengthen resilience against heat extremes, alongside climate mitigation aimed at achieving the 2015 Paris Agreement’s net-zero targets.

In addition, it looked at the importance of risk knowledge among vulnerable farmers facing these conditions – highlighting Morocco as an example, with some 40% of its population making a living via agriculture. A drought, therefore poses a huge threat – with modernization and innovation needed to adapt their approach to farming.

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