Sun
Jun 17 2012
11:28 am

Go go quantitative risk assessment.
thesolutionsjournal.com:

But it’s not just scientists who have been warning us. Insurance companies—the people in our economy who we ask to analyze risk—have been bellowing in their quiet, actuarial way for years. Here’s Munich Re, the world’s largest insurer, in their 2010 annual report: “The reinsurer has built up the world’s most comprehensive natural catastrophe database, which shows a marked increase in the number of weather-related events. For instance, globally, loss-related floods have more than tripled since 1980, and windstorm natural catastrophes more than doubled, with particularly heavy losses from Atlantic hurricanes. This rise cannot be explained without global warming.”



continued...

Munich Re CEO Nikolaus von Bomhard:

A good one-and-a-half years ago, an energy and infrastructure project of unprecedented dimensions was unveiled in Munich. Together with major fi rms in Germany and beyond, Munich Re and the Desertec Foundation launched the industry initiative Dii in July 2009. in the coming years, it plans to create the basis for a network of many hundred solar and wind power plants in north Africa and the Middle east. its objective: to supply large areas of this region and europe with carbon-neutral power. its time horizon: 40 years. The estimated investment volume: many billion euros. i was delighted by the overwhelming response to the launch of the power-from-the-desert project, even if this included a number of critical questions: What is an insurer doing getting involved in producing green electricity? What does Munich Re expect to gain from its Dii participation? And why doesn’t one of the world’s leading risk carriers concentrate on its core business?

The basic answer to these questions is: Because it is part of our social responsibility as a Group, given one of the great challenges faced by humanity – climate change and its consequences. We cannot remain silent and must act on this issue when we are in a position to help develop or support solutions with our knowledge and influence. But there is also an answer that is “nearer to home”: What is looming in connection with climate change has direct implications for our core business. Weather-related natural catastrophes are on the increase, and the evidence is that this is partly due to climate change. The consequences of global warming, if left unchecked, could be so serious in the long term that in a few decades adequate insurance protection would no longer be conceivable for people and firms in some regions. in all likelihood, this scenario can only be prevented if the warming
is restricted to the much-cited limit of two degrees.

“One thing I feel sure of,” Shuman wrote in a letter published in Scientific American in 1914, “and that is that the human race must finally utilize direct sun power or revert to barbarism."
So, a century later, the Dii industry initiative is fulfilling Frank Shuman's Solar Arabian Dream.

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