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No climate change impact on insurance biz: Buffett
http://finance.yahoo.com/news/no-climate-change-impact-insurance-150023173.html?vp=1The effects of climate change, "if any," have not affected the insurance market, billionaire Warren Buffett told CNBC on Monday-adding he's not calculating the probabilities of catastrophes any differently.
While the question of climate change "deserves lots of attention," Buffett said in a " Squawk Box " interview, "It has no effect ... [on] the prices we're charging this year versus five years ago. And I don't think it'll have an effect on what we're charging three years or five years from now."
He said the U.S. has been "remarkably free of hurricanes" in the past five years with only slightly more tornadoes.
"The public has the impression that because there's been so much talk about climate change that events of the last 10 years from an insured standpoint and climate have been usual," he continued. "The answer is they haven't."
While the question of climate change "deserves lots of attention," Buffett said in a " Squawk Box " interview, "It has no effect ... [on] the prices we're charging this year versus five years ago. And I don't think it'll have an effect on what we're charging three years or five years from now."
He said the U.S. has been "remarkably free of hurricanes" in the past five years with only slightly more tornadoes.
"The public has the impression that because there's been so much talk about climate change that events of the last 10 years from an insured standpoint and climate have been usual," he continued. "The answer is they haven't."
On the other hand: http://www.accuweather.com/en/weather-blogs/climatechange/steady-increase-in-climate-rel/19974069
The number of geophysical disasters has remained fairly stable since the 1970's, while the number of climate-related (hydro-meteorological) disasters has greatly increased.
As a result, the amount of economic damage due to these natural disasters has seen a steady upturn.
There were three times as many natural disasters between 2000 to 2009 compared to the amount between 1980 and 1989. A vast majority (80%) of this growth is due to climate-related events.
According to the New England Journal of Medicine, the scale of disasters has expanded, owing to increased rates of urbanization, deforestation, environmental degradation and to intensifying climate variables such as higher temperatures, extreme precipitation and more violent wind/water storms.
As a result, the amount of economic damage due to these natural disasters has seen a steady upturn.
There were three times as many natural disasters between 2000 to 2009 compared to the amount between 1980 and 1989. A vast majority (80%) of this growth is due to climate-related events.
According to the New England Journal of Medicine, the scale of disasters has expanded, owing to increased rates of urbanization, deforestation, environmental degradation and to intensifying climate variables such as higher temperatures, extreme precipitation and more violent wind/water storms.
Mr. Buffet has shown remarkable business sense over his lifetime, but I think he's really missed the mark this time. That, or he's trying to keep investors from getting nervous with soothing words.
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