The debate over whether climate change is man-made or cyclical misses the point that, whatever the cause, unusual weather events are becoming more commonplace, according to a reinsurance claims expert.

Speaking at the Australasian Institute of Chartered Loss Adjusters’ Asian Claims Convention  in Hong Kong last week, Gen Re Regional Claims Manager Asia Pacific Edmund Fernandez discussed recent “very unusual” weather events, including:

• 2013 was the wettest winter in England and Wales since records began in 1766;
• The strongest typhoon to ever make landfall, Typhoon Haiyan, hit the Philippines in November 2013 with winds exceeding 378kmh;
• Hurricane Arthur crossed the North Carolina coast in July last year – the earliest hurricane of the season on record;
• In February cyclones Marcia and Lam were the first two cyclones to hit the Australian mainland simultaneously;
• On March 13 four cyclones were active in the Asia-Pacific region at the same time: cyclones Olwyn in WA, Nathan in Queensland, Pam in the South Pacific and Bavi in the North Pacific.

Mr Fernandez says insurers and reinsurers need to care about the fact extreme weather events are becoming more common.

“In the past 30 years average temperatures have increased by about one degree,” he told delegates. “Extreme temperatures have affected 10% of the world’s surface, compared with 1% 30 years ago.”

“When these extreme weather events are added to global demographic and economic changes we get more frequent natural catastrophe events. So the cost of extreme weather events is increasing.”

Mr Fernandez says urbanisation is increasing around the world, with much of it in areas of Asia and South America that are highly exposed to catastrophe risks.

This has also caused supply chain issues, because companies have moved production to low-cost areas that are often highly exposed to catastrophe risks.

“Flooding is a major issue in this region.”

Mr Fernandez says the insurance industry “could consider making future flood cover contingent on flood prevention measures being implemented”.

Apart from the change in land use from farming to urban increasing flood problems, “there are also construction and infrastructure issues. In many countries growth is not linked to improving building standards or the ability to withstand seismic shock or strong winds.”