ESG is a popular term among investors, but not for social cred. With heightened and lengthened seasons for natural disasters at a time of global climate change and atmospheric warming, the issue isn’t political comeuppance but cold and bitter costs.

The Federal Emergency Management Agency last year updated its National Flood Insurance Program, with underwriting getting stricter and prices higher. A report from reinsurer Swiss Re earlier this year noted that “global economic losses from floods amounted to USD 82 billion, yet insured losses stood at slightly more than $20 billion, indicating a large protection gap.” Those were the results of 50 severe flood events around the world. Hurricane Ian in Florida alone causes billions in damage. Protecting New York City and northern New Jersey alone from big storms will run an estimated $52 billion, according to the Army Corp of Engineers.

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Erik Sherman



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