Should homeowners face less premiums if they waterproof or climateproof?

Lots of action right now on insurance companies and disasters and costs with reports out from Munich Re and Swiss Re – it must be the time when lots of stats from the season just passed are reported.  Canadian underwriter has also just published a blog post at where they push for the fact that if homeowners take efforts and spend money to water proof their homes that they should get a break on their insurance.

From this post as well there is a point made that the City of Toronto is paying about $14,000 per home to upgrade infrastructure in about 100 neighborhoods.  A municipal risk assessment tool has also been developed to help municipalities assess ( infrastructure at risk. The question is would you expect the same allowance for climate impacts if a consumer was making their home more climate friendly – of course that is more complicated – how does a consumer make their home more climate friendly – does putting on solar panels count, what about more energy-efficient, passive solar design etc…lots of those the individual insurance company may not care about, but if you build your house to withstand the tornado or local flooding, then the logic of this article would apply.

Do environmental issues impact human health?

The center for Health and the Global Environment (  is based out of the The Harvard Medical School and has a significant work on climate change, infectious disease and human health.  This has included looking at the full lifecycle costs of coal as well as exploring linkages between infectious disease and climate change lead by some of the thinking of Dr. Paul Epstein.

Many of the links are as a result of warmer temperatures which increase the favourable factors for these diseases to grow and flourish in water bodies or because the temperatures do not cool as much and some of the vectors like mosquitoes survive and spread the disease. In addition climate change may increase the range of some of these diseases north and south because of these warmer temperatures as well as up in altitude.

Here is one article and another one

Much of the discussion in the past about environmental issues has been about the natural world and biodiversity and not realizing that there are also impacts on human health, the economy and our society.  The center for Health and Global Environment was started to explore that question.

Two other reports which Paul Epstein was also involved in include assessing risks for investors and insurers from climate change.  Updates on those to come later.

More on increased risk of wild fires

While arguably not the greatest risk there has been some additional recent thinking and proposed solutions on how to address the risk of wildfires.

First an article by the LA times on the amount of wild fire burnt in the US and the frequency and causes…

Over the summer and on into the fall, images of flames, smoke plumes, firefighting teams and ruined homes have been on replay, and with good reason: As of Aug. 31, this year tied the record for total acreage burned by wildfires, according to the National Interagency Fire Center. More than 8.4 million acres have burned to date — an area larger than the state of Maryland up in flames.

On average, there are now more than 100 “large” fires (fires that consume at least 1,000 acres) each year on Forest Service land. In the 1970s there were fewer than 50. Compared with an average year in the 1970s, each year during the last decade saw seven times more fires that burned more than 10,000 acres, and five times more fires larger than 25,000 acres.

Many factors help drive wildfires, including land-use practices such as logging and fire suppression, day-to-day weather variability and insect and pest infestations. And humans remain the No. 1 reason fires ignite in the first place. But as temperatures have dramatically increased in the Western U.S., wildfires have gotten more frequent and more intense.

And temperatures in the West have climbed faster than in the rest of the country. In the Southwest and Rocky Mountain states, for example, average summer temperatures have risen by 1.6 degrees since 1970, according to our analysis. Scientists aren’t yet able to say how much climate change has influenced temperature change in the West, but the warming is consistent with changes across North America that have been linked to higher levels of greenhouse gases in the atmosphere. Climate models also show that in the coming decades, temperatures in the Western U.S. will probably keep rising.

The National Research Council recently reported that for every degree Celsius (1.8 degrees Fahrenheit) in temperature rise, the size of the area burned in the Western U.S. could quadruple. Consistent with the council’s findings and previous studies, our research shows that the years with more large fires typically had higher-than-average spring and summer temperatures.

To add to the increased fire risk and warmer temperatures…

In recent decades, spring has become longer and warmer, and the snowpack has melted one to four weeks earlier than it did 50 years ago across the West, according to the U.S. Geological Survey. Higher temperatures and earlier snowmelt in turn can increase the volume of dry trees and brush available to ignite and burn, particularly at higher elevations. Not surprisingly, our analysis reveals a clear trend over the last 40 years where wildfires start earlier and burn later in the year, effectively stretching the “burn season” by 75 days, an additional 2 1/2 months of wildfires each year.

These trends are particularly startling for certain states. Since the 1970s, the average number of fires larger than 1,000 acres in a year has nearly quadrupled in Arizona and Idaho and has doubled in every other Western state, from the Rockies to the West Coast, except Washington.

This year, New Mexico endured the largest recorded wildfire in that state’s history. Colorado sustained more than half a billion dollars in 2012 wildfire-related damages . Eight firefighters have lost their lives this year trying to protect homes and the public lands that provide jobs and recreation for millions of Americans in the West.,0,3266044.story

To some extent, how we manage forests needs to be more of this discussion as well, since how we manage forests can increase the temperature and intensity of the fires.  Another blog  (  discusses potential ways of dealing with this increased fire risks and minimizing the economic and potential loss of life through zoning and the role of the insurance industry. Some of these ideas seem similar to the role that the insurance industry can play in flood plains, but is prevented from playing.  From my experience, the insurance sector is not allowed to fully price the risk of building in flood plains in to house and home insurance, partially because of the response of government responding to developer and voter pressure to allow building in these higher risk areas.  In the effect, the government is subsidizing the risk and then all taxpayers pay for this when governments pay out emergency disaster payments for flooded basements in flood plains!