Reinsurance renewal prices hold the line in face of disasters
An expensive few years for the global insurance industry led by a range of natural disasters from wildfires to storms have failed to result in widespread price increases in the latest reinsurance contract renewals. The price of reinsurance — the cover that insurance companies buy to protect themselves from high payouts — often reflects the size of claims. The past few years have been costly. There were expensive natural catastrophes in 2017 and 2018, and to a lesser extent in 2019. And in the US, courts have been awarding ever more generous payouts to people claiming for everything from medical malpractice to injuries in motor accidents….
Water Quality Standards & Natural Disasters
We live in a fragile environment that is becoming even more fragile with our changing climate. As our climate grows more unpredictable in the coming decades, natural disasters like hurricanes, floods and tornados are expected to increase, further straining our current water infrastructure and adversely affecting our air, water and land quality. Natural disasters can also lead to acute or chronic health problems and result in long-term exposure to potentially harmful substances, whether chemical or microbial. Human-made disasters are typically a result of an accident or failure of safety systems, but our changing climate could complicate those as well…
How to Invest In Climate Resilience Without Overspending
Resilient buildings are appealing more and more to CRE investors due to recent extreme weather events. A climate or disaster-resistant building will hold up under a serious storm’s pressure, and it will require less costly maintenance work in the case of a disaster. But, do you really need to invest in these features?
Depending on where your property is located, the risk of a destructive climate event may not be great enough to justify the investment. Climate risks differ for properties depending on the climate and their existing operations. If done incorrectly, adapting your building for climate resilience could be a costly endeavour with little-to-no additional benefits. However, if done strategically, you could reap multi-faceted benefits.
If you’re considering investing in climate-resilient features for a commercial property, take these steps to avoid spending more than you need to…