Michèle Lai, Product Manager, RMS
Contributors: James Cosgrove, Analyst – Event Response, RMS; Juergen Grieser, Director, RMS
The European severe convective storm (SCS) season has kicked off. The heatwave that scorched the continent for the best part of a week set the ideal conditions for deep convection. I am based at the RMS Zürich office, and as everyone enjoyed this heatwave, cooling off by going swimming after work, the potential risk of thunderstorms was never too far from our minds.
The season started with a series of supercells hitting France on June 13 and June 15, continued Thursday, June 22 in Germany and then moved on towards eastern Europe.
Although usually less severe than their U.S. counterparts, SCS in Europe can produce extensive losses, such as Andreas in 2013 with EUR 2.9 billion insured losses (2013 USD $3.9 billion) and Ela in 2014, EUR 2 billion insured losses (2014 USD $2.2 billion).
For Texas, it all began with Hurricane Ike in 2008. In the run-up and during the global financial crisis, between September 2006 and the last quarter of 2008, 780,000 jobs disappeared in the U.S. construction sector. Following Ike, with its generally modest levels of damage across a wide area, “two men in a pickup” teams turned up to get homeowners to sign “Assignment of Benefits” (AOB) forms. A signed AOB form gave repairers responsibility for dealing with the insurer over the claim, and the right to pass the case onto a lawyer assembling a class action lawsuit.
The original idea of contractors sourcing AOBs may have emerged after the 2004-2005 hurricanes in Florida, when lawyer Harvey V Cohen of Cohen Grossman met with restoration contractors to encourage them to employ “Assignment of Benefits” forms so they would deal directly with the insurance company for their payments.
We tend to think that critical systems responsible for managing oil rigs, power stations, steel production plants, are somewhat immune to what happens in the “wild west” of cyberspace. News of cyberattacks tend to focus on data theft, financial heists, or bringing down websites; they are contained within IT systems. If cyberattacks are contained in the cyber world, then the logic goes that only cyber insurers should be concerned by the risk.
There is also a sense of security in the belief that critical control systems for “real world” assets and processes would either be too mechanical, too old, not connected to the same network as the wider Internet, or would run on their own networks. The reality is that industrial control systems (ICS) that manage energy, water, transport, communications, and manufacturing plants, are increasingly managed and controlled remotely or need to be networked. Wherever the systems need to use a network, the systems are exposed to vulnerabilities on that network. For non-cyber insurers, this risk needs to be assessed and managed.
In what was an otherwise relatively quiet Australian cyclone season, Cyclone Debbie proved to be the exception, being the only severe tropical cyclone to make landfall. Although devastating for those affected, Debbie provided an opportunity to help better understand cyclones in the region and the damage they cause.
The Cyclone Testing Station at James Cook University (with collaborators from the Wind Research Laboratory at the University of Queensland) were able to deploy portable weather stations in advance of the event as part of its SWIRLnet (Surface Weather Relay and Logging Network) project, of which RMS is a benefactor.
It would be hard to find a simpler example of a catastrophe. Details are emerging that the overall plan for managing fire risk in the 24-storey Grenfell Tower in North Kensington, London, centered on the assumption that as each of the 120 apartments in the tower block had a fire door, any fire would be contained long enough for the fire service to arrive. Meanwhile all those living in the unaffected apartments could conduct an orderly evacuation from the building. As a concrete building, with concrete floors and walls, it would be hard for a fire to spread. Continue reading
If we’ve learned anything about forecasts and predictions (pick any recent event, sporting, political etc.) they give an indication of the situation, but cannot predict the absolute outcome, and surprises can most definitely happen. We are into the first weeks of the North Atlantic hurricane season, which officially runs for six months from June 1 to November 30, and a variety of forecasting groups and agencies have issued preseason forecasts. Continue reading
Technology, data, and science continues to evolve when assessing and understanding earthquake risk; the new continually replaces the old. In AD 132, Chinese polymath Zhang Heng demonstrated his seismoscope, the first scientific instrument used to Continue reading