Purpose before Profit: The Rise of Impact Investing

I had the privilege of following Ben Brookes onto the Exceedance main stage in 2015. I can’t remember a word of my talk, but something Ben said while I was watching him from the green room has stayed with me ever since:

“Some, like Aubrey de Grey, believe that the first person to live to 1,000 has already been born.”

If that sounds to you like the claim of an oddball biogerontologist, you’re not alone. I for one remember scratching my head quizzically at the time.

All the same, it certainly got me thinking. If we’re going to live that long, we’re going to need something worthwhile to keep us busy. We’re all going to need to find a purpose; a focus for our energies.

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Southern California: Thomas Fire Loss Estimate and Mudslide Commentary

Thomas Fire Loss Estimate

RMS has produced estimates for the insured loss arising from the Thomas Fire that affected the Southern California counties of Ventura and Santa Barbara in December 2017. The estimate will fall between US$1 billion and US$2.5 billion, and includes loss caused by burn or smoke damage to personal, commercial, and industrial lines of business, along with insured loss from business interruption and additional living expenses. It excludes loss to automobile and agriculture lines of business and all damage related to the recent mudslides that impacted the same area. This estimate was calculated using RMS high-resolution exposure data and comparisons against historical fire damage, loss, and claim data.

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Rebuilding Nepal: Part Two

Working with Build Change, an earthquake engineering charity and RMS philanthropic partner, and seeing their work alongside other NGOs all helping Nepal rebuild after the 2015 earthquake, is a source of inspiration for me as I continue my sabbatical in this amazing country. To read about my initial view of the progress made in Nepal, please read my earlier blog.

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Eleanor/Burglind: Another “Near-miss” for Europe?

Over the course of this winter, RMS has been publishing a series of blog posts charting the progress of the 2017/18 European windstorm season. In October last year, we outlined our forecast for a stormier-than-recent season, before checking in with an update at the end of November following three notable autumnal windstorm events. Following a relative lull in activity in December, we used the fiftieth anniversary of the “Glasgow Hurricane” as a reminder of the potential impacts when strong windstorms directly hit major urban areas.

However, at the start of 2018 this lull was broken with the arrival of storm Eleanor (U.K. Met Office/Met Éireann) / Burglind (Freie Universität Berlin), motivating us to once again check-in on the progress of the storm season. Here we outline the meteorology and impacts of this latest storm, and discuss how it fits into the seasonal forecast issued at the start of the season.

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The “Glasgow Hurricane”: A Fifty-year Retrospective

In the early hours of Monday, January 15, 1968, cyclone “Low Q” charged across northern U.K. and smashed the densely populated Central Belt of Scotland with urban winds which have only since been matched when storm Lothar hit southern Paris in late 1999. Glasgow suffered the most intense damage leading to the storm’s more common misnomer of the “Glasgow Hurricane”. This event has quite a low profile today, even in the U.K., and we use its fiftieth anniversary to highlight this exceptional European Windstorm.

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The Mysterious Mitigation Multiple

You will certainly have heard this statement:

“Investing in mitigation action to reduce disaster consequences shows benefits relative to costs multiplied by a factor of X — where X maybe four or seven, or some other number as high as 15.”

As most simply expressed in 2011 by Tom Rooney, U.S. Congressman for Florida’s 17th District “For every US$1 spent on mitigation, US$4 in post-storm cleanup and rebuilding is saved.” And you may have thought — I wonder how they calculated that? But then life is too busy to go into the details, and the statement — that investment in actions to reduce risk shows a fourfold (or sevenfold) reduction in the cost of disasters is very compelling. It implies you could go out and raise the height of a flood wall or strengthen your house and after a few years you would reap a reward in significantly reduced losses.

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California Wildfires: Exposure Impacted by the Thomas Fire

As the Thomas Fire continues to climb the list of the top twenty largest California wildfires for both acres burned and structures destroyed, many in the insurance industry are asking how this fire, in addition to the other burned areas across Southern California, will impact their portfolio. A critical element in understanding the industry impact, but also the significance for an individual book, is the insured value of the burned structures. The Thomas Fire, which at 60 percent containment at the time of publication is already the second largest fire in California history with a reported burn area of 272,000 acres (110,074 hectares), has affected several different communities with wide ranges of average insured value.

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Early Riser: Does a Busy 2017 Equate to an Early Start for North Atlantic Hurricanes in 2018?

Although my colleague Peter Holland declared the Atlantic hurricane season officially closed, there are reports in the media that environmental conditions in the North Atlantic basin may be favorable enough to sustain tropical cyclones, potentially adding to what has already been a very active year and perhaps foretelling an early start to hurricane activity in 2018.

The official hurricane season for the North Atlantic runs from June 1 to November 30 and encompasses over 97 percent of annual climatological activity. Out-of-season tropical systems — events happening through December to May — are rare, but not unprecedented. The U.S. National Oceanic and Atmospheric Administration (NOAA) Hurricane Research Division (HRD) states that since 1851, 88 storms have been observed in the Atlantic during the off-season — that’s about one out-of-season storm every two years. In theory, this could be an underestimate, as the peer-reviewed literature suggests an undercount of Atlantic tropical cyclones prior to the satellite reconnaissance era.

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Exceedance 2018: Risk Management. Transformed.

Our sixth Exceedance conference makes a welcome return to Miami, this time at the waterfront InterContinental Hotel on May 14-17, 2018. The views over the Biscayne Bay, inspiring keynotes, over 75 informative sessions, demonstrations, engagement with experts in The Lab, and networking with 700+ industry professionals are all guaranteed. What else can we guarantee at Exceedance 2018? You will leave Miami with a new perspective on risk management, as we invite you to join us for our most transformative and immersive Exceedance yet.

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Rebuilding Nepal

It has been twelve months since I first visited Nepal, spending two weeks with Build Change, an earthquake engineering charity and RMS partner, to experience first-hand the impact that they are having in the country. Back then, Nepal was only just starting to come to terms with the huge amount of reconstruction work that lay ahead after the 2015 earthquake. While there was hope that the country could “build back better” it was going to be a long, hard road ahead, as I observed in my blog in January this year.

After my first visit, I made the decision to return to this remarkable country and volunteer with Build Change for a longer period. My ambition was to become more involved in the rebuilding work, and help Build Change plan for future post-earthquake reconstruction. Since arriving I have been struck by the contradiction that although so much has progressed, a lot of the same issues are still prevalent and are holding back real change.

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