OCLC Number: (OCoLC)156808558 Subject: Climatic changes -- Economic aspects -- United States. Excerpt: ... firm, recently reported that insured losses should be expected to double roughly every 10 years because of increases in construction costs, increases in the number of structures, and changes in their characteristics. AIR's research estimates that, because of exposure growth, probable maximum catastrophe loss - an estimate of the largest possible loss that may occur, given the worst combination of circumstances - grew in constant 2005 dollars from $ 60 billion in 1995 to $ 110 billion in 2005, and it will likely grow to over $ 200 billion during the next 10 years. Major private and federal insurers are responding differently to the Major Private and prospect of increasing weather-related losses associated with climate Public Insurers Differ change. Many large private insurers are incorporating both near and longer-term elements of climatic change into their risk management in How They Manage practices. On the other hand, for a variety of reasons, the federal insurance Catastrophic Risks programs have done little to develop the kind of information needed to understand the programs ' long-term exposure to climate change. Associated with Climate Change Catastrophic weather events pose a unique financial threat to private Major Private Insurers insurers ' financial success because a single event can cause insolvency or Prospectively Manage a precipitous drop in earnings, liquidation of assets to meet cash needs, or Potential Increases in a downgrade in the market ratings used to evaluate the soundness of Catastrophic Risk companies in the industry. To prevent these disruptions, the American Associated with Climate Academy of Actuaries ( AAA ) - the professional society that establishes, Change maintains, and enforces standards of qualification, practice, and conduct for actuaries in the United States - recommends, among other steps, that insurers measure their...