Homeowners may feel heat of global warming
- Homeowners may feel heat of global warming
Insurers studying impact on rates
By Beth Daley, Globe Staff | August 6, 2006
"Already, one leading company that forecasts the risk of natural
disasters for the insurance industry has revamped the computer model
it uses to simulate future weather trends. The model, which looks five
years out, now captures the possibility that global warming might be
contributing to hurricane activity.
Risk Management Solutions released the new model in May, predicting
that average annual insurance losses will increase 25 to 30 percent in
the coastal Northeast because of increased hurricane activity.
Aided by the scientists, RMS came to the conclusion that the current
period of hurricane activity is so different from the long-term record
it didn't make sense anymore to base its models on only the past.