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Earth’s global average surface temperatures in 2021 were 1.5 degrees Fahrenheit (0.85 degrees Celsius) above the average for NASA’s baseline period, a new report shows.

The average tied with 2018 as the sixth warmest on record, according to an analysis by NASA and the National Oceanic and Atmospheric Administration.

The past eight years were collectively the warmest years since modern recordkeeping began in 1880, and according to NASA’s temperature record, the planet last year was roughly 1.9 degrees Fahrenheit (1.1 degrees Celsius) warmer than the late 19th century average.

NASA uses as a baseline the period from 1951-1980.

“Science leaves no room for doubt: Climate change is the existential threat of our time,” NASA Administrator Bill Nelson stated in for last year. “Eight of the top 10 warmest years on our planet occurred in the last decade, an indisputable fact that underscores the need for bold action to safeguard the future of our country – and all of humanity. NASA’s scientific research about how Earth is changing and getting warmer will guide communities throughout the world, helping humanity confront climate and mitigate its devastating effects.”

The planet is already seeing the effects of global warming, which include declining Arctic sea ice, rising sea levels, and wildfires that are becoming more severe as well as shifting animal migration patterns.

Rising Tide of Coverage Issues

Policyholders should brace for “a rising tide of coverage issues,” asserts a story on the website JDSupra.

Morgan Lewis this week on the site market, including: “(1) the increase in liability claims against policyholders by third parties; (2) the increase in claims by policyholders as they in turn seek to recover from their insurers for losses suffered; and (3) the future of climate-related insurance as policyholders seek to establish the extent of available cover.”

Lewis notes that that litigation resulting from climate change and extreme climate events is increasing worldwide, more than doubling since 2015, with more than 1,000 cases brought in the last six years.

The author writes that companies may turn to their when claims are brought against them by “shareholders in circumstances where they are subject to fines or sanctions as a result of breaching regulations,” as well as by individuals or members of activist groups who have suffered adverse consequences of climate events that were allegedly contributed to or caused by those companies.

It’s clear there has been an increase in the frequency and severity of extreme weather events attributed by scientists to climate change that result in losses by third parties.

“Litigation is on the rise as those third parties bring claims against policyholders that emit greenhouse gases or invest in activities related to such emissions,” Lewis writes. “Such claims are brought on the grounds that those policyholders have acted without regard to climate consequences (or failed to take appropriate action with respect to those consequences). Following such claims, policyholders may then attempt to secure cover from their insurer.”

London Market Challenge

A new survey by the International Underwriting Association shows climate risk is the top challenge currently facing London market insurers.

A survey of the organization’s members covered in an article on ÈȵãºÚÁÏ Journal recorded 27% of respondents mentioning climate change and wider environmental, social and governance issues when asked what are the top three challenges facing their companies.

The second most popular answer was regulatory change, which was cited by 22% of respondents, and third place was challenges raised by the pandemic, particularly a shift to remote working (17%).

Climate risk accounted for 45% respondents’ answers to the question of the most important emerging risks for insurance coverage. Just 7% offered that answer to the same question asked in a similar member survey four years ago.

“Over the past couple of years we have seen climate risk emerge as a dominant topic across many of the London market forums run by the IUA,” IUA Chief Executive Dave Matcham said in a statement. “Companies are focused both on providing cover for more extreme weather events and helping clients manage transition risk as the global economy moves to a more sustainable operating model.”

The member survey was made up of responses from individuals across 44 different London market companies.

Florida Climate Funding

Florida Gov. Ron DeSantis on Tuesday announced funding for more than 100 projects designed to better help protect the state from the rising tides of climate change.

The projects included new stormwater pumps and drains in flood-prone cities, converting leaky septic tanks to sewer lines, elevating and floodproofing critical buildings and restoring wetlands over the next three years, the .

“It’s the largest amount of money for climate change preparation ever seen in Florida — and all $404 million is from the federal American Rescue Plan, the multitrillion-dollar COVID-19 relief act championed by the Biden administration,” an article on Tuesday states.

The state announced $270 million in funding for more than 70 such projects last year, and combined with local matching funds, the total investment tops $1.2 billion, according to the paper.

The governor has said he plans to ask the state Legislature for another $500 million for resilience projects outlined in this year’s budget.

“So far, all of these hundreds of millions in funding for climate change projects address the symptoms of climate change, rising tides causing additional flooding, degrading septic and wastewater systems and swamping roads,” the article states.

Past columns:

• Nearly 8-in-10 Executives Believe World Is at ‘Climate Change Tipping Point’
• Report: More Than 1-in-4 Residents Affected by Climate-Related Extreme Weather in 2021
• Meteorological Society Details Extreme Weather Made More Likely by Climate Change
• Climate Report: ‘Low- to No-Snow’ Will Worsen Water Shortages in U.S. West
• NAIC Report Outlines Ways to Address Climate-Related Risks

Topics Florida Claims London Climate Change Aerospace