Wildfire Risk Potential Grows Amid Hot and Dry Weather

It’s mid-July and for many parts of the United States this means persistent hot and dry weather increases the risk of wildfires.

Some 46 percent of the contiguous United States is currently experiencing moderate to exceptional drought conditions, according to Tuesday’s report from the U.S. Drought Monitor.

The first monthly drought outlook from NOAA’s Climate Prediction Center recently warned that drought in the U.S. Southwest is exceptionally intense and unlikely to break completely, despite some relief from the summer thunderstorm season. Most of the already parched West will likely see drought persist or worsen, NOAA said.

Meanwhile, the Wall Street Journal reports that overgrown forest land poses fire risk to a growing number of communities.

It cites U.S. Forest Service statistics that 65 million to 82 million of National Forest lands are at a “high or very high risk of fire” and are in need of restoration.

Between 1960 and 1970, there was only one year, 1969, when wildfires burned more than five million acres in the U.S. In the last decade, it happened eight out of 10 years, the WSJ adds.

As of July 1, some 11 wildfire, heat and drought events have resulted in an estimated $365 million in insured losses in 2013, according to Munich Re.

Aon’s June Global Catastrophe Recap notes that the Black Forest Fire near Colorado Springs became the most damaging fire in Colorado’s history and left two dead. The fire charred 14,280 acres of land and destroyed at least 511 homes. Insurers received at least 4,500 claims with payouts in excess of $350 million. Due to dozens of destroyed uninsured or underinsured homes, the overall economic loss will approach $500 million, Aon added.

On June 30, 19 firefighters were killed while working to contain the Yarnell Hill Fire in Arizona. This is the deadliest event for firefighters since 9/11 and the third highest firefighter death toll attributed to wildfires.

More information is available via Insurance Information Institute (I.I.I.) facts and statistics onwildland fires and droughts and heat waves.

Lloyd’s: Global Business Leaders Worry about Taxes

High taxation has become the number one threat to global business, soaring up the rankings from 13th to 1st place in the last two years, according to the third Lloyd’s Risk Index.

Other top risks concerning more than 500 of the world’s most senior business leaders in 2013 are loss of customers/cancelled orders, cyber risk, increased material costs and excessively strict regulation.

Interestingly, the survey found that U.S. businesses feel even more unprepared to deal with the risk of high taxation than their European counterparts.

While both regions put high taxation as their number one risk, U.S. respondents rank their preparedness at 37 out of 50, compared to European businesses at 21 out of 50.

But does the increase in volume on the subject of corporate taxation reflect reality? Not necessarily, Lloyd’s says.

It cites data showing that corporate taxes have actually declined or remained static in the past few years, despite the financial problems of most major economies.

Still, personal tax rates in some economies have risen, which particularly affect global businesses competing for international talent, it adds. Indirect taxes are also on the increase.

Lloyd’s says:

The reality for businesses appears to be that government ambiguity about business taxes, whether about extending jurisdictions, amending legislation or changing rates, may actually be more damaging for business confidence than the reality.”

In a press release Lloyd’s chief executive Richard Ward warns that focusing on near-term issues at the expense of longer-term strategic decision making can leave organizations over-exposed to future business challenges:

With business tax in the spotlight and rising up the political agenda, executives are understandably concerned. Yet the danger is that an emphasis on near-term, operational issues comes at the expense of significant, strategic decisions that have previously exercised business leaders.”

First published in 2009, the Lloyd’s Risk Index is run in conjunction with Ipsos MORI.

New Australian research on mesothelioma treatments encouraging

On behalf of Brayton Purcell LLP posted in Mesothelioma on Friday, July 12, 2013.

Researchers at Flinders University in Adelaide, South Australia, are working on new treatments for mesothelioma, an incurable cancer caused by exposure to asbestos.

It is "a completely different strategy to what anyone else has done so far," Associate Professor Sonja Klebe, who is running the novel treatments, told Yahoo! 7 News. The treatments involve both drugs and gene therapy. 

It has yet to be tried on humans, but testing on animals has proven to be somewhat successful. There was "significant improvement" in animals that received the treatment, and those receiving the treatment survived longer, Prof. Klebe indicated.

Asbestos is banned in the U.S. Asbestos manufacturers knew as early as the 1920s that the product could be dangerous to its workers.

Flood Losses Dominate First-Half Nat Cat Losses

Flood events in Europe, Canada and Australia accounted for three of the five costliest natural catastrophes for global insurers in the first-half of 2013.

On Tuesday Munich Re said inland floods in Germany, Austria and the Czech Republic in May/June this year had cost insurers an estimated $3.9 billion so far, while total economic losses will be more than $16 billion. The majority of the insured losses occurred in Germany.

This tally makes the European floods the most costly natural disaster in the first half of 2013.

Floods in the Calgary region of Canada June 20-23 caused more than $1 billion in insured losses and more than $3 billion in overall losses, Munich Re noted. This was the worst flood in documented Canadian history.

Loss estimates are still in progress on both the European and Canadian flood events. Munich Re said:

Around 47 percent of the overall losses and 45 percent of the insured losses derived from inland flooding that occurred in Europe, Canada, Asia and Australia.”

Two thunderstorm events in the United States also ranked in the top five costliest natural catastrophes for insurers in the first six months of 2013.

Altogether, worldwide insured losses from natural catastrophes totaled around $13 billion in the first-half, well below the 10-year average of $22 billion. At around $45 billion, total economic losses were also below the 10-year average of $85 billion.

The Wall Street Journal has more on this story.

The complete overview of natural catastrophe activity for the first-half of 2013, jointly presented by Munich Re and the Insurance Information Institute (I.I.I.) is available here.

Check out I.I.I. facts and statistics on flood insurance and global catastrophes.