[GWSG] FEMA adapts; Citizens adapts a little; cities at risk; skyrocketing requests; Japanese have FIT

[Tilley, Al]

1.  Federal insurance of coastal property has formed a major impediment to planning for climate change because it externalizes the risk to the rest of us, leaving coastal communities less willing to confront the situation.  Both houses of congress have now passed changes which improve the FEMA flood insurance program.  http://thinkprogress.org/climate/2012/07/05/511137/a-perfect-storm-of-support-for-flood-insurance-reform-coalition-praises-congressional-action/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+climateprogress%2FlCrX+%28Climate+Progress%29  The changes raise the cap on annual premium increases from 10% to 20%, add a minimum deductible, restrict subsidies for and development of repetitively lost properties, and mandate consideration of climate change in calculating risk.  http://www.vpr.net/news_detail/95065/changes-to-flood-insurance-program-could-mean-high/  At a conference last month I heard people from FEMA assert that the program would never be altered because wealthy coastal property owners had too much clout with congress.  The FEMA people were excessively pessimistic.  Environmental groups, insurance companies, deficit hawks, and real estate interests (who like things stable, perhaps) united to support the legislation.  If similar reforms could be made to Citizens’ Property, a Florida state insurance corporation which similarly protects coastal owners, planning for the coasts could proceed more seriously and usefully.  Those of us who live near the coast, as my family has for over 30 years and my wife’s family did for much of the past century, will see their properties decrease in value while their insurance rates will rise.  They deserve sympathy and support as we confront the coming changes.

2.  Citizens Property, now the largest property insurer in Florida, has indebted all holders of auto and home insurance in the state for losses to coastal properties.  Pressure is building to increase rates, now capped at 10% annual rise for the majority of existing policies. http://www.pnj.com/article/20120602/NEWS01/306020015/Citizens-Insurance-changes-weighed-meeting-Tampa    This year saw a policy limit of $1 million, lifting of rate increase caps for new policies and some existing policies, cancellation of builder’s risk policies, and other changes.  http://staeblerappraisal.com/citizens-property-insurance-summary-of-2012-changes-%E2%80%93-so-far%E2%80%A6  Citizens Property is actuarially unsound.  It was devised because insurers fled the state when the government would not allow them to charge for risks increasing with climate change.  It is time to re-privatize coastal insurance so that the state may begin to confront its future more fully.  The trauma to the state and its social structure will be greatly diminished if we acknowledge and respond to the risks.

3.  New Orleans, New York, and Miami are among the world’s 20 cities most at financial risk from climate change.  http://www.bloomberg.com/slideshow/2012-07-06/top-20-cities-with-billions-at-risk-from-climate-change.html

4.  NOAA chief Jane Lubchenco said that current heat waves and wild fires have send requests for climate change data and projections “skyrocketing.” http://www.boston.com/news/science/articles/2012/07/06/official_more_in_us_convinced_of_climate_change/

5.  Japan has initiated a generous feed-in tariff to support residential solar power.  http://www.renewableenergyworld.com/rea/news/article/2012/07/asia-report-japan-enters-renewable-era-with-major-developments??cmpid=WNL-Friday-July6-2012
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