Catastrophic events (CAT) include hurricanes, floods, landslides, tsunamis, volcanic eruptions, earthquakes, tornados, and wildfires (See Figures 1-4 below). “CAT season” is the phrase experts commonly use to describe the...more
It can be difficult for business leaders to assess how climate change will impact commercial real estate finance. The sheer volume of climate information in the public domain is beset with politically charged debate,...more
About 90% of the world’s earthquakes take place in the Ring of Fire, an area surrounding the Pacific Ocean laced with volcanoes. Though the name might conjure images of earthquakes spouting fire through cracks in the ground...more
2017 saw approximately USD 330 billion in losses from natural disasters worldwide, of which around USD 135 billion were insured, according to a Munich Re report. It was the second costliest year on record, only surpassed by...more
First party insurance claims involving multiple perils present unique challenges when assessing whether an insurance policy provides coverage. For example, suppose an insurance policy covers damage resulting from fire, but...more
A powerful 8.1 magnitude earthquake struck southern Mexico late Thursday, September 7, 2017. According to the U.S. Geological Survey, the epicenter of the earthquake was in the Pacific Ocean off the coast of the state of...more
Property policies typically include an exclusion for loss caused by or resulting from earth movement. Some insurers will provide coverage for earth movement, but that coverage will usually have a sub-limit. For years,...more
The issue of whether hydraulic fracturing or “fracking” causes earthquakes has first-party insurance implications because policies typically exclude damage from tremors attributable to man-made causes as opposed to purely...more
Last month we reported that the Oklahoma Insurance Commissioner had issued a bulletin cautioning earthquake insurers against denying claims on the basis that the quake was attributable to a man-made cause, which is to say oil...more
The jury is still out on whether hydraulic fracturing or “fracking” causes earthquakes, but carriers whose policies afford coverage for quakes have recently been denying such claims, asserting that they are excluded because...more