Shop talk: A conversation with Jim Kane
Global economic losses from natural catastrophes such as floods, hurricanes and wildfires reached $270 billion in 2021, according to an annual report published by reinsurance giant Swiss Re. Though less than half of those losses ($111 billion) were actually insured, the figure equaled the fourth-largest payout since the Swiss Re Institute, the insurer’s research arm, began keeping records in 1970. Bottom line: the $5 trillion insurance industry is getting rocked by climate disasters with no end in sight.
Though California, with its numerous and massive wildfires, has been an especially disaster-prone state, the situation there promises to spread across the United States. To analyze the situation, Mike Consol, editor of Institutional Real Estate, Inc.’s Real Assets Adviser, called on Jim Kane — partner, senior vice president and national practice leader at USI Insurance Services — to provide some insights.
Explain the crisis in the