Group of Scientists Say Climate Change Drove Helene Impacts

Climate change was a key driver of the devastating impacts of Hurricane Helene, a group of scientists said this week.

Hurricane Helene made landfall as a Category 4 major hurricane west-southwest of Perry, Taylor County, Florida on Sept. 27, with maximum sustained winds of 140 miles per hour, bringing hurricane-force winds, damaging storm surge, and heavy rainfall to the Louisiana coastline.

Modelers have come in with similar insured loss estimates from the event. The latest estimates came from Verisk, which said insured losses in U.S. for Hurricane Helene will range between $6 billion to $11 billion. AccuWeather last week increased its estimate of the total damage and economic loss from Helene in the U.S., and now says losses are likely to be between $225 billion and $250 billion.

A report from World Weather Attribution out this week found that “climate change is enhancing conditions conducive to the most powerful hurricanes like Helene, with more intense rainfall totals and wind speeds.

According to the report, rainfall was roughly 10% heavier due to warming, and maximum wind speeds of similar storms are now about around 11% greater due to warming.

“If the world continues to burn fossil fuels, causing global warming to reach 2 °C above pre industrial levels, devastating rainfall events in both regions will become another 15-25% more likely,” the report states.

Green Insurer Search Tool

A new internet search tool promises to locate home and auto policies from providers that don’t have large investments in fossil fuels.

Green America launched a searchable directory designed to connect consumers with insurance companies that don’t underwrite fossil fuel extraction projects or invest heavily in the fossil fuel industry.

The Climate Smart Insurance Directory offers options in all 50 states, the District of Columbia and Puerto Rico. It lists local and regional home and auto insurance providers that offer pricing and opportunities for policy-bundling.

According to the database designers, most states have at least four qualifying insurers for consumers to compare.

To qualify, insurers must have no direct investments in the fossil fuel industry (considered a Grade A), have fossil fuel investments under $200 million (Grade B), or investments under $500 million (Grade C), as rated in a database by Urgewald, a German environmental and human rights NGO. Companies must also have an A- or above financial stability rating from AM Best.

Users can go to the data base and chose a state and get a list of carriers and a grade.

California, for example, has five listings, including Auto Club Enterprises Insurance Group (Grade A), CSAA Insurance Group (Grade A) and Wawanesa General Insurance Co. (Grade A). Michigan has seven listings, including Hastings Mutual (Grade A), Pioneer State Mutual Insurance Company (Grade A) and Amica Mutual Group (Grade B). New York has nine listings, including Merchants Insurance Group (Grade A), Preferred Mutual Insurance Co. (Grade A) and Utica First (home only) (Grade A).

Lloyd’s

The Lloyd’s of London market should impose binding rules to prevent insurers from supporting fossil fuel expansion, the NGO Reclaim Finance said this week.

Reclaim Finance came out with the suggestion as it accused the Lloyd’s market of undermining climate action, according to a Reuters article on Insurance Journal.

While European insurers like Generali and Zurich have reduced underwriting for fossil fuel projects, Lloyd’s left underwriting decisions to syndicate members.

According to Reclaim Finance, five of Lloyd’s 51 members have policies restricting coverage for new oil and gas fields.

“If the Lloyd’s market wants to be taken seriously as a leading player in the transition, its managing agents need policies now,” Ariel Le Bourdonnec, an insurance campaigner at Reclaim Finance, told Reuters.

John Neal, CEO of Lloyd’s, said Lloyd’s is committed to a net zero goal, and he told Reuters in an interview before the NGO report came out that Lloyd’s did not plan to ask its members to tighten their oil and gas underwriting policies. However, Lloyd’s would monitor managing agents’ transition plans, he said.

Pulling up Roots

In recent years, Americans leaving their residences in search of better jobs and affordable housing are heading into areas that pose a higher risk of natural disasters, which have become more destructive due to climate change, a news report asserts.

For example, Hurricane Milton didn’t impact the Tampa area in a worst-case scenario that had looked more likely earlier in the week. Had it stayed on its path, it would have made a direct hit on a metropolitan region that has grown by 39% (an additional 1 million people) since 2000, according to the CBS News article.

Hurricane Helene wreaked havoc on Florida and moved on to North Carolina, including the city of Asheville, where the population rose by 13% since 2000. The region attracted new residents by appealing to retirees, remote workers and other professionals pursuing Asheville’s highly rated quality of life, according to the article.

“The population growth of Tampa and Asheville are part of a trend noted by economists, demographers and scientists: Regions facing heightened risks from climate change drawing in more residents,” the article states. “The juxtaposition of growing populations and intensifying natural disasters, in turn, creates the risk for even greater losses to human life and property.”

Past columns:

• Climate Change and Rising US Insurance Rates
• ‘Impossible’ Weather Increasingly Blamed on Climate Change
• CBO Says Mortgage Subsidy Cost from Flood Damage to Hit $395M by 2053
• Activist Report Shows More Insurers Making Climate-Related Disclosures
• World Meteorological Organization: Good Chance for More Record-Setting Global Temps