No regrets: Insurance response to weather related risk
Everyone keeps an eye on the weather. You hear it at work, last thing Friday and first thing Monday morning - how was your weekend? Wasn't the weather good or bad, indifferent or whatever? Throughout the week people start planning their weekend around what they think (or hope) the weather will do - barbeques, picnics, sport, gardening or a walk on the beach. The insurance industry, probably more than any other industry, also keeps a watchful eye on the weather. In Europe and America the industry is paying much closer attention to developments in the weather and changing climatic conditions. The simple reason for this is that catastrophic weather related losses, along with earthquakes, represent the largest single threat to the industry's long term solvency and profitability.