How bad is the Western drought? New study says worst in 1,200 years. You read that right!

Insurers can’t outrun natural perils

Insurance Australia Group chief executive Nick Hawkins and his rival at Suncorp Group, Steve Johnston, this week provided investors with a reminder of how bad the country’s two biggest insurers are at estimating the financial impact of climate change.

In the half year to December, Hawkins put aside $380 million to cover natural perils, which covers cyclones, strong winds, storms, floods, hail, bushfires and other natural disasters caused by climate change.

IAG’s actual hit from natural perils in the half year was about $300 million higher than expected at $681 million, a cost that smashed the insurance margin from 19 per cent a year earlier to 7.1 per cent…READ ON

How bad is the Western drought? New study says worst in 1,200 years. You read that right

It hasn’t been this dry in Utah and the rest of the western United States in 12 centuries.

That finding was released Monday as part of a new study published in Nature Climate Change and led by Park Williams, a bio-climatologist at the University of California at Los Angeles.

While there was a time in the 1500s when soil moisture content was drier than that of 2000 to 2018, tree ring evidence shows that 2000 to 2021 was the driest 22-year period since at least the year 800.

And the worse news is that the drought will continue this year, eclipsing the megadrought of the 1500s…READ ON

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