Alastair Clarke

Across many parts of the U.S. the frequency and intensity of flooding have increased during recent decades.

By October 1, a total of 46,279 wildfires had burned more than 5.9 million acres across the U.S. in 2021.

To help assess the resilience of the UK financial system, the Bank of England runs annual solvency stress tests and biennial exploratory scenarios for banks and periodic stress tests for select insurance firms.

Most coastal flooding in the UK is caused by extra-tropical cyclones (ETCs). The updated ETC model now incorporates storm surge and demonstrates more accurate event losses and a more certain view of risk.

An hours clause stipulates that the cedant is only protected against the financial loss accumulated within a set number of hours of a catastrophe. Calculating the expected loss on a treaty with an hours clause is an ongoing challenge facing reinsurers.