The emerging El Niño could cause wind drought in North America, which would have a significant effect on renewable energy production in the region, says a new report launched by WTW.
The review also highlights how different 2023 has been to date with five category five storms in the first five months. This year’s combination of El Niño and exceptional Atlantic warmth is expected to have significant impact on weather patterns and temperatures across the globe.
The review outlines key perils which need to be monitored as well as exploring the reasons why those natural catastrophes turned into a natural disaster, going beyond the severity of the event, and incorporating insights into exposure and vulnerabilities of the regions affected. The report also delves into the science behind those events and provides insights on what to watch for in the second half of the year.
Key findings include:
Helene Galy, Managing Director of the WTW Research Network, said “Our direct links and close collaboration with the scientific community through the WTW Research Network enables us to provide deeper insights into key natural catastrophes as well as lessons learned. When quantifying natural catastrophe risk, it is crucial to incorporate in-depth scientific analysis in our modelling. As we are seeing with the current wildfires and extreme weather across Europe, China and North America, the business impact of these disasters means it is crucial that risk managers understand their potential consequences, as well as learning lessons from previous events and the value and limits of seasonal forecasting. We are delighted to be introducing this latest bi-annual scientific review to help our clients understand and mitigate natural catastrophe risks.”
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