Wednesday, 5 March 2014

Climate change talk not causing Warren Buffett to change his insurance odds

When you run an insurance company you put your money where your mouth is so Warren Buffett is a man to take notice of when he comments about the impact of climate change. He does, after all, run one of the world’s biggest reinsurance companies. Assess the risk incorrectly and a reinsurance company loses its money.
So what does Warren Buffett think about the impact of climate change? He was asked just that question this week when appearing on CNBC in the United Sttes:
2014-03-05_askwarrenAnd the answer?

The effects of climate change, “if any,” have not affected the insurance market, billionaire Warren Buffett told CNBC on Monday—adding he’s not calculating the probabilities of catastrophes any differently.
While the question of climate change “deserves lots of attention,” Buffett said in a “Squawk Box” interview, “It has no effect … [on] the prices we’re charging this year versus five years ago. And I don’t think it’ll have an effect on what we’re charging three years or five years from now.” He added, “That may change ten years from now.”
He said the U.S. has been “remarkably free of hurricanes” in the past five years with only slightly more tornadoes.
“The public has the impression that because there’s been so much talk about climate that events of the last 10 years from an insured standpoint and climate have been unusual,” he continued. “The answer is they haven’t.”
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