week commencing 18/07/21:

With the UK’s ‘freedom’ foray taking place in a heatwave, record-breaking floods across Europe and China and wildfires in California, the last ‘This week’ before Luther Towers heads for the holidays is a climate risk special.

Europe: flooding to cost billions

Extensive flooding across parts of Europe is likely to cost the reinsurance industry up to €3bn. With the majority of property underinsured, the full economic impact may be significantly higher. External-link. [Reinsurance News, Law 360, Insurance Insider]

China: deadly flood

“Once in a millennium” levels of rainfall in the Chinese city of Zhengzhou have killed at least 25 people and brought the city to a standstill. Recent investment in flood defences wasn’t enough. External-link. [Financial Times]

USA: Californian wildfires worsening

Californian wildfire commercial property losses in three out of the last four years have exceeded $4bn. The growing frequency and severity of this year’s wildfires is likely to increase losses further. External-link. [Reinsurance News]

A solution: trap and store carbon

According to a report by the Swiss Re Institute, carbon removal from the atmosphere followed by its swift and permanent storage is one way to reach net zero greenhouse gas emissions by 2050. External-link. [Asia Insurance Review]

A solution: insurers need to do more

The World Bank and UN have said that insurers need to increase the response to climate change, focussing on improving the carbon footprint of customers rather than just pulling away from polluting businesses. External-link. [Financial Times]

Hiscox chooses internal candidate

The group’s current CFO, Aki Hussain will replace Bronek Masojada as group CEO. Masojada’s tenure saw a UK and Europe based $800mn-premium business grow to $4bn with a substantial US retail presence. External-link. [Insurance Insider]

Science and research syndicate coming to Lloyd’s

Specialist medical liability MGA, Medical and Commercial International, has received Lloyd’s approval under its “Syndicate-in-a-box” initiative aimed at encouraging innovative new products to the market. External-link. [Intelligent Insurer]

The gift that keeps on giving

In an effort to keep up momentum, the US Department of Justice has been given a deadline of 20 July to produce antitrust investigation materials for the proposed merger between Aon and Willis Towers Watson. External-link. [Insurance Business]

Pubs fighting for pandemic claims

Stonegate, the UK’s largest pub group, is looking to claim for all losses related pandemic closure – £845m. MS Amlin, Liberty Mutual Insurance Europe and Zurich’s wording has set their insured liabilities at £17.5m. External-link. [Financial Times]

Aviation rates touching the sky

Large-scale groundings as well as losses from crashes and aircraft disappearances are causing rates to double, liability limits to reduce and more demanding training according to wholesale broker CRC Group. External-link. [Insurance Day]

The hacking of the hacks

The editor of the FT is one of more than 180 editors, investigative reporters and global journalists who discovered they were under surveillance by NSO Group. Some disgruntled editors may be miffed they weren’t considered important enough to hack, while other in the tabloid world might do better than to keep quiet. External-link. [The Guardian]

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