Experts claim that global warming is making the weather conditions that generate tornadoes more frequent and widespread, which is leading to a surge in the number of areas that are affected. Climate Central reports that the U.S. has experienced six times more billion-dollar severe storms in the past decade than in the previous two decades, which are the storms that produce tornadoes. Already this year, the number of tornadoes has exceeded the annual average and has taken at least 58 lives across 10 states. The warming climate is causing tornado alley to expand, and the season is starting earlier.
The Ingredients for Tornado Formation
According to Professor Walker Scott Ashley, a meteorology expert at Northern Illinois University, tornadoes require four components for their formation, namely moisture, instability, wind shear, and lift. In a warming climate, the first two elements are expected to rise significantly. The warming of the earth’s atmospheric system and oceans will increase the moisture level, leading to more moisture for storms and greater instability.
The Impact of Tornadoes on Communities
When a powerful F-4 tornado hit Rolling Fork, Mississippi, in March, the residents were relatively unprepared, as the area had not experienced a tornado in more than half a century. The city only had one tornado siren, and some residents failed to hear it. As a result, two more sirens are now being installed. The density of states like Mississippi is higher than that of Kansas, which makes the former more vulnerable to tornadoes. The majority of residents in Rolling Fork did not have insurance, which is why tornado alley is becoming a new focus for insurers.
The Financial Impact of Tornadoes
Due to the increasing threat of tornadoes, global reinsurer capital declined by 17% ($115 billion) to $560 billion during the first nine months of 2022. As a result, reinsurers are raising prices, limiting coverage, and even exiting some markets to improve returns. State Farm and Allstate have stopped writing homeowner’s insurance in California due to the rising risk of wildfires. Insurance capital is becoming a precious finite commodity, and prices are rising, coverage options are becoming tighter, and deductibles are going up. John Dickson, the president of insurer Aon Edge, claims that if the current trend continues, economic losses from tornadoes could reach hundreds of billions of dollars in a calendar quarter. Insurers need to have infrastructure, capital mechanisms, and connected community mechanisms to respond to these events.
The increasing threat of tornadoes due to global warming is becoming a concern for insurers and communities. Insurers are raising prices and limiting coverage due to declining capital, while communities must be better prepared to face the challenges posed by tornadoes.
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