Swiss Re has been warning for a number of years now that extreme weather conditions caused by global warming were “likely to aggravate the loss situation”. Insurers like Swiss Re take huge hits to their profit margins when weather-related catastrophes increase markedly in any one year.
Last year was relatively chaos free with a low number of natural disasters in 2006, causing a total of $48bn (£24.8bn) worth of damage. This was far below the $230bn in 2005 – largely due to Hurricanes Rita, Wilma and Katrina.
For those who live in Europe you can have the pleasure of reading a report from Swiss Re that predicts which countries will increasingly be a danger to live in, thanks to a predicted increase in climate change induced storm damage; read, The effects of climate change: Storm damage in Europe on the rise.