Risk & Business

Image via Wikipedia Based on an article published on the UCAR website , http://www2.ucar.edu, the oil coming from the leak at the BP site in the Gulf of Mexico may eventually reach the eastern coast of the U.S. Based upon their computer modeling the oil may get caught up in the Gulf's Loop Current and eventually make it's way up as far as North Carolina . While they are careful to say this is based upon estimation and modeling, the fact is it is unknown what sort of environmental damage may occur should this happen and how many and what types of claims may crop up. Hard to imagine the U.S. Government would allow an oil company to engage in this type of drilling without a detailed system of safety procedures in place should an accident of this type occur.

According to an article on the BBC news website, Munich RE states that natural catastrophes caused less damage and claimed fewer human lives than the previous year. As compared to 2008 when there were an estimated $200bn in paid losses, 2009 saw a significant decline to approximately $50bn in paid losses for the year. The reinsurance giant stated that this was due to a significant decline in hurricanes this year. Of course, the company being based in Europe, a board member couldn't resist commenting on the lack of significant progress on climate change policy at the Copenhagen summit this past year. Interesting, there were fewer natural catastrophes, such as hurricanes, yet many still cling to the "climate change" canard. I know I spent allot of time pondering it as I was digging out from the recent snowstorm.