Winter to cost US insurers at least $1 billion
The insurance industry will pay out a minimum of $1 billion following the extreme winter weather that hit parts of America in February. The Aon Benfield Global Catastrophe Recap evaluates the cost of natural disasters and highlights five separate periods of heavy snow, frigid cold, freezing rain and ice that impacted the U.S. Northeast, Mid-Atlantic, Midwest, Plains and Southeast during the month, killing 72 people. In Boston it was the snowiest February on record. Meteorologist Steve Bowen commented: “Boston was the epicenter for record snowfall that resulted from an onslaught of strong winter storm systems. Arctic cold, including multiple returns of the Polar Vortex, also contributed to residential and commercial losses that impacted dozens of states.” However he says that if cooler conditions continue into spring then it could keep the occurrence of tornados at their current historic lows. Europe and Asia were also hit with exceptionally snowy conditions in February resulting in loss of lives and property. Read the full report.
CIA to adapt to threats of cyber attacks
The CIA is to undergo a massive overhaul to ensure that it is equipped to tackle the increasingly frequent and complex threats from cyber attacks. Its director John Brennan addressed thousands of CIA agents last week to tell them of the structural changes that will see new mission centers based on the agency’s Counterterrorism Center which will be designed to deal with what he called more challenging times. Brennan said that the agency must “make sure we're able to understand all of the aspects of that digital environment." As part of the changes there will be a new Directorate of Digital Innovation which will be tasked with monitoring and tracking cyber threats. It will hold the same status as the agency’s existing directorates. Read the full story.
Insurers call for policymakers to be “efficient” with regulations
The cost to insurers from new and changing regulations has been highlighted by an international industry body. Insurance Europe, which represents national industry associations across the continent, says that policymakers need to be aware that when they make a change there is an impact on insurers and therefore their clients. It says that the goal should be to make insurance affordable to all and therefore reduce the cost to the state when losses occur. Michaela Koller, director general of Insurance Europe, said: “The fact that millions of people in Europe still do not have adequate insurance coverage is a major problem, both for the individuals involved and for the governments who must support them in times of need. The federation has published a document calling for regulators to ensure that their rules are efficient and avoid increasing costs unnecessarily. Read the report.
