Climate change, cyberrisk and pandemics continue to be the top systemic risks for insurers and reinsurers, executives said during an Aon-hosted panel event. The coronavirus pandemic "taught us that preparedness is critical," and insurers and reinsurers should have "a seat at the table" in the development of governmental strategies for risk mitigation, said Sean McGovern of AXA XL.
La Nina seems to have formed in the equatorial Pacific, and it could last through February or later, according to the Climate Prediction Center. The phenomenon could lay the foundation for a cold winter in parts of the country and could exacerbate a drought in California, potentially worsening wildfire activity.
A one-in-100-year cyberloss scenario would leave US commercial property insurers and reinsurers exposed to attritional losses of $9.5 billion and catastrophic losses of $3 billion, according to a report from CyberCube, A.M. Best and Aon. Such losses "are relatively low when placed in the context of natural catastrophes," but can have a significant and unexpected effect on insurers because "these exposures are often unpriced or unaccounted for in enterprise risk management," said Sridhar Manyem of A.M. Best
Rising rents are contributing to inflation, adding an additional factor for policymakers to consider as they look to keep the economy on track. The national median rent has risen 16.4% since January, according to Apartment List, and the Consumer Price Index measure of rent rose 0.5% in September from the prior month.
A new plan issued by the Biden administration tasks federal financial regulators and budget offices to create frameworks that gauge dangers posed by climate change and effects on federal operations and services. The plan includes previously announced updates to building codes in relation to the National Flood Insurance Program. It also calls on the departments of Housing and Urban Development, Agriculture and Veterans Affairs to take into account climate factors for their home loan programs.
The end of the eviction moratorium in late August has not resulted in the sharp rise in evictions that some had anticipated. Several factors -- including federal rental assistance and a willingness among landlords to work with troubled tenants -- might be limiting the size of the increase, with eviction filings rising 8.7% last month from August, according to Eviction Lab.
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