If you believe in Global Warming, then you understand or partially understand the new normal for insurance companies. If you do not believe, then when the head of Munich Reinsurance Corporate Climate Centre which monitors climate-change risks says we are in a new normal, then you have to wonder was 2017 an exceptional year or a normal year? If it was an exceptional year, then insurance companies should be expected to pay out less in 2018. If you believe Mr. Rauch’s comments of a new normal, then it is time to consider insurance companies and how much can they pay? In an article by Tom Sims and Alexander Huebner of Reuters noted in a report by German reinsurer Munich Re said last year’s disaster was the 2nd worst in history after 2011. Munich Re believes global warming is having an affect.

Reinsurers are in the business of insuring insurance and are experts in managing risks and rarely get caught off guard. The issue in the business is increases in coverage prices are running at prices less than expected. There is still strong competition, but if this is the new normal double digit price increases are expected at some point.

Linking to dividend paying stocks, we all believe we are trying to do the right thing but maybe it is not enough. We throw things to be recycled because landfill prices have increased, but it seems China has been taking most of North America’s recycling and they maybe wanting less of it. If disasters are the new normal, then greater revenues are going to be needed to prevent and lessen the impact of the disasters. You may want to insure your investments help slow down Global Warming.

There are more questions than answers, till the next time – to raising questions.