June 1, 2021

A recent article in Bloomberg News resonated with me because this spring, the most common questions or comments I am getting from our Canadian Yachting Media consumer readers, regards insurance and the rising cost of coverage.

Things have been pretty hairy lately with the California wildfires, weather disasters in Australia and big hurricane losses for boat owners in the southern US, Eastern Seaboard and the  Caribbean in recent years. The story in Bloomberg pointed out that climate change is making hurricanes bigger and stronger, and the main point to the story was that it may soon push them farther north. Canada’s homeowners, boat owners, businesses and insurers underestimate that escalating risk, according to one of the world’s leading reinsurance firms. 

Canada has proved to be among the world’s most climate-resilient countries, having so far escaped the worst effects of the natural weather disasters whipped up by global warming, according to a report by global reinsurance firm Swiss Re AG. 

Although hurricanes have become increasingly ferocious, they often dissipate before reaching Canada. But as ocean surfaces warm, the frequency, duration and intensity of storms increase. That’s extending their range and making Canada, where just one or two tropical cyclones make landfall each year, more vulnerable, according to the Zurich-based company, which provides reinsurance to 15 per cent of the country’s insurance industry.

“You have an increased likelihood of hurricanes making landfall further north and eventually making landfalls at higher latitudes than what we’ve ever seen before,” Monica Ningen, head of Swiss RE Canada, said in an interview.

The U.S. National Oceanic and Atmospheric Administration is predicting another overactive hurricane season this year, though not as bad as last year, when named storms caused more than 400 deaths and US$40 billion in damage and losses in North America.

Now, at the start of the season, it would be a good idea to check on your coverage and also, to check out the storm preparedness steps that are recommended for boat owners, marinas and yacht clubs in the south. I suspect that few of our customers are thinking of the hurricane risks. It makes sense to give them fair warning and it could be good business for you as well.

Read the whole Bloomberg story here: https://www.bnnbloomberg.ca/mega-hurricane-risk-spurs-swiss-re-warning-to-unprepared-canada-1.1606855 

Andy Adams – Editor