Megayachts, megastorms and megatemps

That horrific story about billionaire Mike Lynch's yacht? Yeah, while pinning down the blame is an inexact science, we can surely expect to read more about extreme weather events as global temperatures continue to rise. “We can’t point to climate change as the culprit for the storm that sunk the superyacht in Sicily, but it’s?clear that warmer seas are creating a more hospitable environment for waterspouts,” University of Reading 's Peter Inness told 彭博资讯 he said.? The uncertainty is leaving insurers to now account for increasingly unpredictable and severe weather events, even in historically calm areas.

Speaking of those ungodly temperatures, Las Vegas just broke its 82-year-old heat record in July, reaching a face-melting 120°F. “The climate currently behaves like a guy who would come and jump a meter farther than anyone before,” ETH Zürich professor Erich Fischer explained in an interview. “You would think it’s an athlete on steroids."

With that, no surprise that hurricane season started off with a bang as Beryl became the earliest Cat 5 storm on record. Since then, it's been a wee bit quieter than some of the early summer's clicky headlines suggested. But Deep Sky just dropped an unsettling report, and while there are no disturbances currently looming in the Atlantic, we got a long way to go. The researchers found that, thanks to climate change, the frequency of deadly hurricanes has shot up by 300%. In other words, what used to be a once-in-a-century event is now happening every 25 years. "Imagining hurricanes worse than Katrina and Harvey is not easy," the author wrote. "But rather than waiting for last minute evacuations, we should seriously analyze the risks in front of us so that we can be most prepared."

As if climate change wasn't enough... Japan this month issued the first-ever "Megaquake" warning, which didn't exactly quell fears about how vulnerable the island nation is to massive shakers. J.P. 摩根 analysts, however, suggest that, as far as our industry is concerned, reinsurers are well-prepared, noting that “even if a large Japanese earthquake were to occur, the claims burden should be manageable for European reinsurers."

The reinsurance market is, indeed, on solid footing. AM Best reported that total dedicated reinsurance capital grew by 7% in 2023 to $568 billion, with projections hitting $625 billion in 2024. Traditional reinsurance capital saw a 14% increase, while third-party capital rose to $100 billion. AM Best predicts more growth in 2024, with traditional capital hitting $515 billion and third-party capital landing between $105 billion and $110 billion.

Meanwhile, there appears to be some mounting disgruntlement across the employment front. The Federal Reserve Bank of New York found that job satisfaction has taken a notable hit in recent years, with pay, benefits and promotion opportunities coming up short. The report also looked at the state of workers' "reservation wage," which is what prospective new hires say they'd need to consider taking a job. It's been surging lately thanks to inflation and a tight labor market. At the same time, salary offers are dropping.

Ah, but let's not lose track of what matters most in this business: the customer. When it comes to satisfying customers, price alone isn't enough to secure loyalty, according to Accenture's Matthew Soren Madsen. "The core consumers of insurance are changing," he wrote. "Millennials, the first generation of digital natives, are entering their peak insurance buying years. Insurers must cater to this demographic’s unique needs. Across all demographics, there is a demand for more, better, and faster services."

On that note, when it comes to customer service, yeah, that's our jam. Don't take my word for it, drop us a DM or visit our website for more information. You're welcome in advance!