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Transcript

Insurance in a Climate Changed World · Simmer Down

• 0:00
  Speaker 7: So we're putting it up for you.
• 0:04
  Speaker 2: Much appreciated.
• 0:05
  Speaker 2: Thank you all.
• 0:07
  Speaker 2: Welcome everybody.
• 0:09
  Speaker 2: I'm Jeff Perlman with CBiz Board and Perlman.
• 0:12
  Speaker 2: I want to thank you all for coming today.
• 0:16
  Speaker 2: Everyone here has something in common.
• 0:19
  Speaker 2: You're either a CCH supporter, a C Biz Board and Pearlman client, or a Chubb policy holder.
• 0:27
  Speaker 2: And our goal is you'll be considering becoming all three of those by the end of the evening.
• 0:33
  Speaker 2: So that that's our goal tonight.
• 0:36
  Speaker 2: I do want to thank our speakers.
• 0:41
  Speaker 2: I'll I'll get to introduce them in a minute.
• 0:44
  unknown: Louder, Jeff?
• 0:46
  Speaker 2: Louder.
• 0:46
  Speaker 2: Closer to the microphone.
• 0:51
  Speaker 2: Okay.
• 0:52
  Speaker 2: Got it.
• 0:53
  Speaker 2: Check.
• 0:53
  Speaker 2: So after they're done speaking, there's going to be a QA.
• 1:03
  Speaker 2: And for those who ask a question, we're going to have a Tomas Sweet, Thomas Sweet chocolate bar.
• 1:12
  Speaker 2: There's an ad for Thomas Sweet.
• 1:14
  Speaker 2: So make sure you think about questions and don't be shy.
• 1:18
  Speaker 2: I also want to, before I introduce the speakers, I was given a long speech here for introducing the speakers.
• 1:28
  Speaker 2: Does anybody want me to read the long speech?
• 1:32
  unknown: No.
• 1:33
  Speaker 2: No.
• 1:33
  Speaker 2: Okay, we're not going to be able to do that.
• 1:33
  Speaker 2: We're going to skip that, but we are going to play a game.
• 1:38
  Speaker 2: And the game is.
• 1:40
  Speaker 2: So we have a chubb swag bag here.
• 1:50
  Speaker 2: A lot of fun things in here.
• 1:51
  Speaker 2: I'm not going to tell you exactly what's in there, but there's some really cool things in here.
• 1:54
  Speaker 2: And the game is whose birthday is closest to Steve's.
• 1:59
  Speaker 2: I don't know Steve's birthday.
• 2:01
  Speaker 2: Steve, what is your birthday?
• 2:02
  Speaker 2: September 25th.
• 2:04
  Speaker 2: September 25th.
• 2:06
  Speaker 2: Anybody got a birthday in September?
• 2:08
  Speaker 2: Raise your hand.
• 2:08
  Speaker 2: Anybody in the 20s?
• 2:11
  Speaker 2: What's your birthday?
• 2:15
  Speaker 7: I can't win it.
• 2:16
  Speaker 7: I'll with my birthday.
• 2:24
  Speaker 2: All right.
• 2:25
  Speaker 2: 20.
• 2:28
  Speaker 2: That's the winner right there, September 20th.
• 2:31
  Speaker 2: What are the odds of that that the Chubb speaker and the Chubb person who runs New Jersey have the closest birthdays?
• 2:45
  Speaker 2: That that was not planned.
• 2:47
  Speaker 2: So I I want to thank uh Kathleen Biggins and her team for being here.
• 2:56
  Speaker 2: I want to um also thank the um CBIS board and Pearlman folks who put this together, Heather Vogel and Alexis Mirando, thank you guys very much.
• 3:05
  Speaker 2: Also, the um originator of this idea, Kathy Veek.
• 3:08
  Speaker 2: Where's Kathy?
• 3:09
  Speaker 2: Kathy was the originator of this idea.
• 3:12
  Speaker 2: So, Kathy, thanks for uh for putting this all together and really we really appreciate that.
• 3:19
  Speaker 2: Um so just two quick words about Kathleen and Steve.
• 3:24
  Speaker 2: Kathleen from 2014 till now has been behind sea change.
• 3:28
  Speaker 2: She's led the charge, she's depoliticized the issue, which is a very difficult thing to do right now.
• 3:35
  Speaker 2: Blue state, red state, Republican, Democrat, it has nothing to do with what Kathleen is talking about tonight.
• 3:43
  Speaker 2: Steve, who Steve Fischel, a Chubb executive, who oversees New York Metro, will talk tonight about from Chubb's perspective, um, risk management, global risk, and that's it.
• 3:56
  Speaker 2: I'm gonna turn it over to which one?
• 4:08
  Kathleen Biggins: So, first off, thank you guys so much.
• 4:10
  Kathleen Biggins: It is such an honor to work with CBiz and Chubb to bring this important message forward.
• 4:16
  Kathleen Biggins: And it is just so heartwarming to see friends and new faces in our audience today.
• 4:23
  Kathleen Biggins: So, thank you all for joining us.
• 4:25
  Kathleen Biggins: Um, I want to do a quick shout out to the woman on our side who made this all possible, which is Molly Jones, who's really orchestrated with Thank you, Molly.
• 4:35
  Kathleen Biggins: And I also want to note that while you get to see me a lot up here with a microphone, we are a team.
• 4:43
  Kathleen Biggins: And this entire endeavor has been fueled by a wonderful group right here in Princeton.
• 4:49
  Kathleen Biggins: We are growing in that team, it's becoming bigger, more diverse, we're expanding and have team members now in South Carolina and Georgia.
• 4:56
  Kathleen Biggins: And all of us are committed to helping people understand the risk of climate change because it's coming and it's coming fast, and the sooner we recognize what's coming, the better we will be able to prepare for it.
• 5:09
  Kathleen Biggins: We have had a banner fall, and in part it's been aided by our team down in Georgia and Columbia.
• 5:20
  Kathleen Biggins: We were down in Georgia in September, we talked to about 400 people, Chamber of Commerce, Rotary Clubs, a private event with conservatives at a home as well as schools.
• 5:31
  Kathleen Biggins: And then just last week we were down in South Carolina where we were invited to a business symposium.
• 5:38
  Kathleen Biggins: And the first day we spoke to students from college and from the business school and from high school in the AP courses, telling them about what's coming, and then it was followed with a job symposium, letting them know about the jobs that were in South Carolina and the new technology that is driving so much economic development.
• 6:00
  Kathleen Biggins: And then the next day we were lucky enough to be the keynote in the morning, and the governor of the state, McMasters, was the keynote in the afternoon.
• 6:08
  Kathleen Biggins: So it was a heady experience and an exciting one to be able to address a room full of business people in South Carolina and share our messaging with them.
• 6:19
  Kathleen Biggins: And the one thing I would one thing that I would note is the thing that I believe really helps our messaging work, really helps people change their mind, begin to grasp the enormity of the risk in front of us, is the economic equation.
• 6:44
  Kathleen Biggins: And the fact that the costs, the pain of climate change are really coming into clearer focus.
• 6:51
  Kathleen Biggins: We are feeling them in our communities, we're seeing it on our TV, and yes, we're beginning to see it in our insurance premiums.
• 6:59
  Kathleen Biggins: The actual risks are going up, and it is cascading across different parts of our financial system and our society.
• 7:08
  Kathleen Biggins: The other part of that financial equation is the fact that these new jobs that are coming with renewable energy, with new clean tech, are creating supporters all around the country.
• 7:21
  Kathleen Biggins: So while climate change may not be a welcome term in South Carolina and Georgia, clean tech jobs sure are, and they are embracing them in a major way.
• 7:32
  Kathleen Biggins: And this kind of dichotomy of the pain and cost on one side and the opportunity on the other is indeed changing people's perspective.
• 7:41
  Kathleen Biggins: Now perhaps the poster child for this change in our economic reckoning of climate change risks and hazards is indeed the insurance industry.
• 7:52
  Kathleen Biggins: Because think about it, it is created to share the risks so that we are resilient enough to bounce back.
• 8:00
  Kathleen Biggins: But as I said, the risks are changing due to climate change.
• 8:05
  Kathleen Biggins: And so much of what we have experienced has been based on what history has shown versus what we know is coming in the future.
• 8:13
  Kathleen Biggins: The past is no longer prologue, and that is upsetting the markets as we move.
• 8:19
  Kathleen Biggins: A quick vignette, though I think in talking with you guys here in this audience, we heard several people already who are losing insurance or couldn't buy insurance.
• 8:29
  Kathleen Biggins: But the Wall Street Journal ran an article last week talking about someone who had a beautiful home in the West Palm Beach area who opened his letter from his insurance company and discerned that his insurance costs had gone up to $110,000 a year.
• 8:46
  Kathleen Biggins: So what did he do?
• 8:48
  Kathleen Biggins: Well, he shopped around, he got it down, and he put a for sale sign right in the front of his yard.
• 8:53
  Kathleen Biggins: And his was not the only for sale sign.
• 8:56
  Kathleen Biggins: There is a reckoning coming, and again, as we mentioned, the sooner we understand what's coming, the better we'll be able to protect ourselves and prepare.
• 9:05
  Kathleen Biggins: So with that, um, I'm going to hop into a deep dive into why the risks are happening, and then I'm going to hand it over to Steve to tell us what the insurance companies are and the industry is doing to pivot and to become prepared for our new future.
• 9:23
  Kathleen Biggins: And I'm going to sit with them for a few quick questions and then open it up to the audience.
• 9:28
  Kathleen Biggins: Sound good?
• 9:28
  Kathleen Biggins: All right.
• 9:30
  Kathleen Biggins: Let's go.
• 9:32
  Kathleen Biggins: We would go if the Chubb if the There we go.
• 9:40
  Kathleen Biggins: So just to set the stage, um, Chubb Insurance, and indeed the entire industry has been very loud and vocal about the fact that climate change is real and poses an existential threat.
• 9:52
  Kathleen Biggins: This is directly from their website saying that it is indeed an existential risk to the planet, and human activity is a direct and contributing cause, and that concerted effort by the world community, including governments, businesses, and citizens, is necessary to avoid its worse impacts.
• 10:09
  Kathleen Biggins: So, what is this thing that's causing so much havoc?
• 10:14
  Kathleen Biggins: And why aren't you working?
• 10:16
  Kathleen Biggins: How about that?
• 10:21
  Kathleen Biggins: How about that?
• 10:23
  Kathleen Biggins: Okay.
• 10:23
  Kathleen Biggins: No, I'll just tether.
• 10:29
  Kathleen Biggins: Everybody knows I like to walk, but I'll just walk in a circle.
• 10:32
  Kathleen Biggins: Um so what is climate change?
• 10:34
  Kathleen Biggins: Climate change.
• 10:35
  Kathleen Biggins: No, I did.
• 10:38
  Kathleen Biggins: Unless you want to read that again.
• 10:40
  Kathleen Biggins: So you're not.
• 10:46
  Kathleen Biggins: No, no, Mop.
• 10:47
  Kathleen Biggins: How about here?
• 10:47
  Kathleen Biggins: Okay, so what is climate change?
• 10:51
  Kathleen Biggins: It is literally just the changes in our long-term weather patterns.
• 10:54
  Kathleen Biggins: Uh, it's our hot, our cold, our wind currents, our ocean currents, our snow, our rain.
• 11:00
  Kathleen Biggins: And when we talk about it, it really is just the changes since the mid-20th century.
• 11:05
  Kathleen Biggins: And why is it happening?
• 11:07
  Kathleen Biggins: Because we are putting up greenhouse gases up into the atmosphere.
• 11:13
  Kathleen Biggins: And what that is doing is upsetting the balance on where nature stores carbon.
• 11:19
  Kathleen Biggins: So if you think about it, nature stores carbon in the oceans, in the atmospheres, and in the earth.
• 11:26
  Kathleen Biggins: And when you think about what fossil fuels are, I think it will help us understand why it's happening.
• 11:32
  Kathleen Biggins: They are bits of plant and animal matter that fell to the earth millions of years ago, got silted over time, heat and pressure turned into pools of carbon.
• 11:41
  Kathleen Biggins: Oil, gas, and coal.
• 11:44
  Kathleen Biggins: And humans came and we started to use it to power our vibrant economies that we all have benefited from.
• 11:50
  Kathleen Biggins: But in doing so, we upset the balance that had existed all the time that our civilization has flourished.
• 11:57
  Kathleen Biggins: And how much are we putting up?
• 12:00
  Kathleen Biggins: Well, actually, quite a lot.
• 12:02
  Kathleen Biggins: Even going back 800,000 years, you can see that the CO2 levels bandied really between 150 and 300 parts per million.
• 12:14
  Kathleen Biggins: And these were through the natural cycles the Earth has always gone through, through ice age and thaw, ice age and thaw.
• 12:20
  Kathleen Biggins: And then in 1910, we broke out of the natural patterns, breaking over 300 parts per million.
• 12:26
  Kathleen Biggins: Today we're at 421 parts per million.
• 12:29
  Kathleen Biggins: And scientists say if we were to continue on our current emissions path, we would hit close to a thousand by the end of the century.
• 12:36
  Kathleen Biggins: And I know you guys may have seen the slide before, but it's my favorite slide.
• 12:41
  Kathleen Biggins: So bear with me if you've lived through it once before.
• 12:44
  Kathleen Biggins: And the reason I think it's my favorite slide, because to me it represents the big picture of what this shift means.
• 12:50
  Kathleen Biggins: On the bottom, we have time going back 20,000 years.
• 12:53
  Kathleen Biggins: On the y-axis, we have temperatures from about 9 degrees colder to about 11 degrees hotter.
• 13:00
  Kathleen Biggins: The gold line is average global temperature.
• 13:02
  Kathleen Biggins: The white are just kind of markers for us to have as reference points.
• 13:06
  Kathleen Biggins: So 20,000 years ago, we were in a glacial period of the ice age.
• 13:11
  Kathleen Biggins: We had a mile of ice over Manhattan, and the southernmost glacier ended right at exit nine in New Brunswick.
• 13:18
  Kathleen Biggins: Much of the world was uninhabitable.
• 13:20
  Kathleen Biggins: And then over about eight or nine thousand years, nature moderated the temperature, coming up to what more or less has been the average global temperature for the last 10,000 years.
• 13:32
  Kathleen Biggins: And that temperature is right around 60 degrees Fahrenheit.
• 13:35
  Kathleen Biggins: And that's a great temperature for human productivity.
• 13:39
  Kathleen Biggins: It's also a great temperature for many of the animals that have evolved to share the earth with us today.
• 13:45
  Kathleen Biggins: But it is not a temperature the earth has been at very often in its long history.
• 13:50
  Kathleen Biggins: It's not like the earth wants to revert back to that temperature if we knock it off that point.
• 13:55
  Kathleen Biggins: And then once we hit that 60 degrees Fahrenheit, we got to settle down.
• 14:00
  Kathleen Biggins: We did farming, we did civilization.
• 14:02
  Kathleen Biggins: That little hump is the medieval warming period when the Vikings grew vegetables in Greenland, the divot, the ice age, when the glaciers came down, causing all sorts of food deprivation, upheaval, even wars, showing that small changes in average global temperature really do impact how we experience life on the surface.
• 14:23
  Kathleen Biggins: And then you see it going up, up, and away, landing somewhere between 3.6 and 10.8 degrees Fahrenheit by the end of this century, with the most current data showing that we're aiming between six and seven degrees hotter.
• 14:39
  Kathleen Biggins: So let's think about that.
• 14:41
  Kathleen Biggins: Eight years for nature to moderate, to literally march those trees from Mexico to Montana, and to create the ecosystems and biodiversity that we depend on.
• 14:51
  Kathleen Biggins: And now we are potentially triggering a similar delta in the next 100 years.
• 14:57
  Kathleen Biggins: And that's scary, and that's why all of the countries of the world came together and said, or 196 of them, not quite all of them, but they said we aren't going there.
• 15:07
  Kathleen Biggins: We aren't going to go to those high numbers, we have to keep to those low numbers, that 3.6, which correlates to a 2 degrees Celsius, or even better, a 1.5 degrees Celsius, because at those levels we think we can handle what nature's going to throw at us.
• 15:24
  Kathleen Biggins: But above that, it becomes much more difficult.
• 15:27
  Kathleen Biggins: So what are these changes that nature is throwing at us?
• 15:31
  Kathleen Biggins: Well, the first one we're going to delve into is heat.
• 15:34
  Kathleen Biggins: This graphic show from NASA shows how average global temperature has changed from the industrial, pre-industrial time to today.
• 15:43
  Kathleen Biggins: When it is blue, it is colder than average, white average, yellow warmer, and red hotter.
• 15:49
  Kathleen Biggins: So as you can see at the end, the red really comes crescendoing in, and that's because we aren't just breaking records, we're really shattering them.
• 16:08
  Kathleen Biggins: The 10 hottest years have all been recorded since 2010.
• 16:12
  Kathleen Biggins: This summer we had the hottest summer ever recorded.
• 16:16
  Kathleen Biggins: We had the hottest ocean temperatures ever recorded.
• 16:20
  Kathleen Biggins: And I believe I just read from our friends at Climate Central that as of October, this was the hottest 12 months ever experienced by humans.
• 16:30
  Kathleen Biggins: So we are on a roll, and that roll is going in the wrong direction.
• 16:34
  Kathleen Biggins: And what that means is that our summers are getting hotter and that we are experiencing more periods of extreme heat.
• 16:43
  Kathleen Biggins: And what it also means is that it's going to continue because as long as we put up greenhouse gas emissions, it's going to get hotter.
• 16:53
  Kathleen Biggins: This is a projection if we were going to continue on our current emissions path that shows that our area would feel like an area in Georgia, Augusta, Georgia, by the end of this century.
• 17:06
  Kathleen Biggins: Quite a bit hotter than we are today.
• 17:09
  Kathleen Biggins: And Chubb has taken notice.
• 17:12
  Kathleen Biggins: This is directly from their website, showing how the fact that we're changing the climate is cascading into all these different areas of risk.
• 17:22
  Kathleen Biggins: Whether it's more wildfire, more drought, hurricanes, windstorms, extreme temperatures, larger hailstones, which is a big deal in Minnesota, and also floods, both rain and coastal.
• 17:35
  Kathleen Biggins: So that's a lot to go through, and we're going to keep this short.
• 17:38
  Kathleen Biggins: So I thought I might just focus on the risks that are biggest to us right here in Central Jersey.
• 17:44
  Kathleen Biggins: And I put my property into an online tool called Risk Factor, or Risk Finder, sorry.
• 17:53
  Kathleen Biggins: And what it showed is that for my property, which is right outside of Princeton, I don't have a lot of flood, though many community uh towns and many houses here in Princeton do, but not where I am.
• 18:07
  Kathleen Biggins: My fire factor was much higher than I ever thought.
• 18:11
  Kathleen Biggins: Wind also higher than I thought, and then heat, I of course expected.
• 18:16
  Kathleen Biggins: So let's just jump through those four sectors super quickly.
• 18:20
  Kathleen Biggins: Why is flooding such a big deal?
• 18:23
  Kathleen Biggins: Well, the rains are coming in a way that is more dangerous, and that is simply because of physics.
• 18:31
  Kathleen Biggins: The water in the ocean is warmer, so more of that is evaporating up into the air.
• 18:37
  Kathleen Biggins: The air is warmer so that it can hold more water vapor, so that when conditions are right, it means that we can have these heavy torrential rains.
• 18:46
  Kathleen Biggins: So for every degree Celsius, the temperature increases.
• 18:51
  Kathleen Biggins: It can hold as much as 7% more water vapor.
• 18:54
  Kathleen Biggins: So as we continue to warm up, they'll hold more water vapor, and these storms will indeed increase in the future.
• 19:01
  Kathleen Biggins: And what does that mean?
• 19:02
  Kathleen Biggins: It means on September 29th, right here in our area, we experienced torrential flooding that caused big damage, and of course, New York City was impacted even on a bigger scale.
• 19:15
  Kathleen Biggins: And indeed, it's happening everywhere.
• 19:18
  Kathleen Biggins: This shows that across our nation and across the world, these types of heavy, dangerous rain floods are happening more often.
• 19:27
  Kathleen Biggins: But rain floods are just part of the flooding.
• 19:30
  Kathleen Biggins: We also know that we are also getting more coastal flooding.
• 19:34
  Kathleen Biggins: And that is a big deal for a state who has so much population on our shoreline.
• 19:41
  Kathleen Biggins: The seas have risen about 1.4 feet here in New Jersey since the Industrial Revolution, or around 900, I'm sorry, since 1900.
• 19:54
  Kathleen Biggins: And the reason why the oceans are rising are twofold.
• 19:57
  Kathleen Biggins: One is the land ice is melting, the glaciers up in the mountains and running to the sea.
• 20:02
  Kathleen Biggins: And the other is the fact that the oceans are thermally expanding.
• 20:05
  Kathleen Biggins: They're actually getting hotter, and as they do, they're getting bigger, which doesn't seem fair.
• 20:09
  Kathleen Biggins: New Jersey is especially handicapped because we were at the very bottom of that glacier, as I mentioned, the glacier that ended in exit nine.
• 20:18
  Kathleen Biggins: And that means now the land south of that is actually subsiding, and we are also pulling a lot of our groundwater out.
• 20:25
  Kathleen Biggins: So that's double hit, forcing the land down as the oceans are going up.
• 20:32
  Kathleen Biggins: And the New Jersey DEP projects that of course the oceans will continue to rise because we put up greenhouse gas emissions.
• 20:41
  Kathleen Biggins: It's going to get warmer and more glacial ice will melt.1 feet by 2050 and as much as 5.1 feet by 2100.
• 20:52
  Kathleen Biggins: And when you think about it, Hurricane Sandy inundated our coastlines with 32 feet of water.
• 20:59
  Kathleen Biggins: According to scientists, that water hit 71,000 more people and caused $8 billion more of damage simply due to sea level rise, simply due to the fact that it had a higher launch pad of which to crash upon our shores.
• 21:16
  Kathleen Biggins: And this is really concerning to me.
• 21:19
  Kathleen Biggins: That same New Jersey DEP projected out some of the future flooding days, and what they show is that even on days where we don't have storms, just when the tides are rising all on their own, we are going to have significant days where businesses are closed, where school buses can't get through.
• 21:43
  Kathleen Biggins: According again to the to the DEP, it's projected that Atlantic City could have 95 days of sunny day flooding by 2050 and 355 days by 2100.
• 21:59
  Kathleen Biggins: 50%.
• 22:00
  Kathleen Biggins: So it's not the worst or the or the best, it's actually the middle probability.
• 22:08
  Kathleen Biggins: And those are sobering numbers, right?
• 22:11
  Kathleen Biggins: I mean, those are coming at us very, very fast.
• 22:14
  Kathleen Biggins: And of course, this gives us just another example of how fast these flood days are increasing.
• 22:24
  Kathleen Biggins: Okay, wildfires.
• 22:27
  Kathleen Biggins: I didn't think we had a problem with wildfires.
• 22:29
  Kathleen Biggins: I was very shocked, as I mentioned, and seeing those numbers.
• 22:33
  Kathleen Biggins: But in fact, New Jersey had 1,034 wildfires last year, burning over 17,000 acres.
• 22:41
  Kathleen Biggins: And the thing that was so concerning is because we are getting hotter and drier, our fire season is expanding.
• 22:48
  Kathleen Biggins: It used to be mid-March to mid-May, now it's from February through the summer.
• 22:52
  Kathleen Biggins: And risk factor, again, that group I put in online to get the earlier figures, projects that 48% of New Jersey households could be at risk for wildfire in the next 30 years.
• 23:04
  Kathleen Biggins: Again, kind of startling.
• 23:06
  Kathleen Biggins: And then hurricanes.
• 23:09
  Kathleen Biggins: Hurricanes are getting meaner.
• 23:12
  Kathleen Biggins: And I can say that, I'm from New Orleans.
• 23:14
  Kathleen Biggins: So hotter oceans are hurricane food, right?
• 23:20
  Kathleen Biggins: That is really nature's way of cooling down her oceans.
• 23:24
  Kathleen Biggins: And the oceans are as much as four degrees hotter.
• 23:27
  Kathleen Biggins: And what that means is we're seeing a different type of pattern with our hurricanes.
• 23:33
  Kathleen Biggins: They're intensifying very quickly, like Maria did on Puerto Rico, going from a tropical storm to a five in a day.
• 23:40
  Kathleen Biggins: And that means we don't have time to get out of harm's way.
• 23:43
  Kathleen Biggins: The other thing that's really pertinent to us is that they are forming and staying stronger further from the equator, which has real ramifications for us up on the northern seashore.
• 23:55
  Kathleen Biggins: It means that bigger, more powerful hurricanes will probably hit us as we get further into the century.
• 24:02
  Kathleen Biggins: And then the last thing that we saw in risk factor was heat.
• 24:05
  Kathleen Biggins: And I know we talked a bit about it, but this map just knocked my head back.
• 24:11
  Kathleen Biggins: This is a graph that shows the portion of the world that had climate change attributed heat during this July.
• 24:24
  Kathleen Biggins: 81% of humanity experienced heat that was exacerbated by climate change.
• 24:31
  Kathleen Biggins: And again, it's only gonna get more if we continue to put up greenhouse gases the way we are.
• 24:37
  Kathleen Biggins: And it translates to actual danger days right here in our neighborhoods.
• 24:41
  Kathleen Biggins: You can see that we have almost two weeks of dangerous days versus back in 1970.
• 24:47
  Kathleen Biggins: And this all translates to natural disasters and to the fact that we are experiencing more of them and they are more ferocious.
• 24:56
  Kathleen Biggins: Now, scientists don't say that climate change is responsible for all natural disasters.
• 25:02
  Kathleen Biggins: We've always had them before.
• 25:03
  Kathleen Biggins: But what they do say is they load the dice and stack the deck.
• 25:07
  Kathleen Biggins: They make them more likely.
• 25:08
  Kathleen Biggins: And we're seeing them more frequently.
• 25:10
  Kathleen Biggins: The Red Cross says that these natural disasters are kind of our new chronic condition.
• 25:16
  Kathleen Biggins: They're happening almost at every three weeks at a very significant level at the $1 billion level.
• 25:22
  Kathleen Biggins: So they're happening fast and furiously.
• 25:24
  Kathleen Biggins: And the thing that I think is so intriguing is that the area that they are happening the most in are in severe storms, which are just heavy rains that we don't know are coming, that we can't prepare for and yet can cause so much damage.
• 25:38
  Kathleen Biggins: And I would be remiss if I didn't remind people that even as we look at a singular disaster or a singular aspect, these events have cascading impacts across our economy.
• 25:55
  Kathleen Biggins: And I think this is actually going to be one that we will need to do a whole nother panel on, but I just want to touch on it for a second because I think we think, oh, it's hot, oh there's a fire, but we don't really compute what that means financially.
• 26:13
  Kathleen Biggins: So when we have extreme heat, we have all sorts of health impacts.
• 26:17
  Kathleen Biggins: We have people with more heart and lung disease, we have increased mortality, it is the number one weather killer.
• 26:24
  Kathleen Biggins: We also have decreased production.
• 26:27
  Kathleen Biggins: Human productivity goes down, agricultural yields go down when we get too high, it can lead to water losses, and it also leads to transportation challenges for commerce.
• 26:37
  Kathleen Biggins: Why?
• 26:37
  Kathleen Biggins: The roads can melt, the railroads can twist, rivers get too low for the barges, and even airplanes can't take off if it's too hot.
• 26:46
  Kathleen Biggins: Severe storms and wildfires hurts people, hurts communities, but it also hurts infrastructure and it also hurts businesses' ability to continue on.
• 26:56
  Kathleen Biggins: And a good example of that is right here in Lambertville, when Hurricane Ida came through, there were a lot of businesses that didn't have flood insurance, didn't have the right kind of insurance, and they couldn't bounce back.
• 27:07
  Kathleen Biggins: That town was damaged for quite a long time, and we don't always factor that in.
• 27:12
  Kathleen Biggins: And then also sea level rise.
• 27:14
  Kathleen Biggins: And to me, this is perhaps the most insidious one because the ramifications are so big and yet we're only beginning to nibble around the edges.
• 27:23
  Kathleen Biggins: Not only does sea level rise impact our homes and communities and our water supplies, but it is projected that by 2100, 650,000 private parcels of land or 4 million acres will be under or below the tide line in 30 years.
• 27:44
  Kathleen Biggins: Guess who owns the land under a tide line?
• 27:48
  Kathleen Biggins: The state.
• 27:50
  Kathleen Biggins: And that is property that's going to circle through and have impacts on the mortgage markets and even on the municipal bond markets, right?
• 28:13
  Kathleen Biggins: Because it's a trickle-down effect.
• 28:15
  Kathleen Biggins: So again, we're not going to focus on that today.
• 28:17
  Kathleen Biggins: Today we're talking about more individual threats from climate change and what we can do about it.
• 28:22
  Kathleen Biggins: But I just want to put that kernel in your mind because it shows just how big and how insidious this threat really is.
• 28:29
  Kathleen Biggins: And because I totally depressed you, I'm going to give you this.
• 28:32
  Kathleen Biggins: This is a chart that shows where our heat goes if we continue on our current path by generation.
• 28:42
  Kathleen Biggins: So if you have a grandkid, you have a child, you can take a look at where they lie.
• 28:47
  Kathleen Biggins: For me, Gen Alpha, which is a new term for me, 2013 born, would experience almost seven degrees of excess heat or hotter temperatures than we have today if we continue on our current path.
• 29:00
  Kathleen Biggins: But if we make cuts, significant cuts, they would only experience two.
• 29:05
  Kathleen Biggins: So our future is in our hands.
• 29:08
  Kathleen Biggins: We do not have to go in the direction that we currently are going.
• 29:12
  Kathleen Biggins: But to do that, we need to kind of come together and be more rational on how we evaluate this risk.
• 29:18
  Kathleen Biggins: So with that, hopefully I didn't totally depress you.
• 29:21
  Kathleen Biggins: I'm going to hand it over to Steve, who will tell us how we can protect ourselves.
• 29:34
  Steven Fischl: So from an awesome riveting topic to insurance, which is what you want to talk about at 6:30 at night.
• 29:39
  Steven Fischl: Like this is like great.
• 29:40
  Steven Fischl: If I put you to sleep, that's what insurance does to all of us anyway.
• 29:44
  Steven Fischl: So that's fantastic.
• 29:45
  Steven Fischl: So no.
• 29:46
  Steven Fischl: A little bit, this is we're not going to go through an insurance class.
• 29:50
  Steven Fischl: This is not what we're intending to do, but I want to at least give a little backdrop in terms of what insurance does and the fundamentals that'll kind of help as we go through this as to why we're experiencing what we're experiencing.
• 29:59
  Steven Fischl: So, one, we cover our homes, we cover our contents, we cover jewelry, we cover fine art and boats, and we can talk about businesses, right?
• 30:07
  Steven Fischl: All the property and all the different liability and casualty lines.
• 30:10
  Steven Fischl: From there, you have all of the extra coverages.
• 30:13
  Steven Fischl: When you think about it, when your home, you know, it's it has a fire, you gotta go live somewhere, or you gotta live in a hotel, you gotta go rent another home, you have to do something.
• 30:20
  Steven Fischl: Well, insurance helps pay for that, right?
• 30:23
  Steven Fischl: Because you don't want to have to, like, I mean, we experienced during Sandy, I remember the Howard Johnson was like $800 a night.
• 30:28
  Steven Fischl: I don't want to say the Howard Johnson for $50 a night, let alone $800.
• 30:32
  Steven Fischl: That's not where I'm going, right?
• 30:34
  Steven Fischl: So we need to be able to find a different way to get that, and that's where insurance comes in and risk.
• 30:38
  Steven Fischl: Right?
• 30:38
  Steven Fischl: So what it is, you pay a premium, I pay a premium, right, to get property and casualty.
• 30:44
  Steven Fischl: We're not talking about health.
• 30:45
  Steven Fischl: That's a completely different world.
• 30:46
  Steven Fischl: I don't even like them.
• 30:47
  Steven Fischl: All right, so we're gonna stay on the property side here, and we're gonna go, all right, here we go.
• 30:52
  Steven Fischl: You have a contract, there's a claim, you would call Jeff over here and say, Look, I've got a claim.
• 30:57
  Steven Fischl: They would call Chubb, we get the claim moving, we get it settled, right?
• 31:00
  Steven Fischl: That's the idea.
• 31:01
  Steven Fischl: I hand you a contract based on premium, we will make good on that promise.
• 31:05
  Steven Fischl: Right?
• 31:05
  Steven Fischl: We will go ahead and take care of your claim.
• 31:08
  Steven Fischl: There are certain exposures though that normally are not covered in your normal contract.
• 31:13
  Steven Fischl: One, flood.
• 31:14
  Steven Fischl: That's just not one of the things that is normally covered.
• 31:17
  Steven Fischl: You'd have to buy a flood product, whether that's through NFIP, through the government, or you buy it from a company like Chubb and say, hey, I'd like to buy their personal flood product rather than the government's one.
• 31:26
  Steven Fischl: And we can get into the semantics of you know why which one is better or worse, or just, hey, just buy one.
• 31:31
  Steven Fischl: From our perspective, just buy flood.
• 31:33
  Steven Fischl: Or you think of earthquake, hurricane, right?
• 31:36
  Steven Fischl: You might be in Florida and say, like, I don't want to worry about hurricane, but that's its own risk.
• 31:40
  Steven Fischl: There's premium associated with it, but there's different things that kind of come out there.
• 31:44
  Steven Fischl: The next step, though, that what I think is really important is that we as insurers actually go and buy insurance for ourselves.
• 31:52
  Steven Fischl: So we buy reinsurance.
• 31:54
  Steven Fischl: Uh, my brother actually used to work for Munich, so right down here on Route 1, he now is in New York City at another company, so he gave up on, I guess, Princeton.
• 32:02
  Steven Fischl: He lives in Yardley, but he wanted the trip to New York City as opposed to Princeton.
• 32:05
  Steven Fischl: I said, not a good job.
• 32:07
  Steven Fischl: Um, so we buy reinsurance, and then funny enough, reinsurers buy insurance from other reinsurers.
• 32:12
  Steven Fischl: It gets long, long diatribe.
• 32:14
  Steven Fischl: But that is really what I want to start is explain where some of this has been going that we've been seeing.
• 32:20
  Steven Fischl: As Kathleen talked about, you know, some people are losing insurance.
• 32:22
  Steven Fischl: Where's this going?
• 32:24
  Steven Fischl: Some of it is actually from inflation, which we don't want to get into here.
• 32:27
  Steven Fischl: That's a different topic for a different day.
• 32:29
  Steven Fischl: You have catastrophes.
• 32:31
  Steven Fischl: We've had the storms.
• 32:32
  Steven Fischl: We had the random rainstorm that hit New York where all of a sudden there was like you know two inches of water out of nowhere, and you're like, I just wanted my morning coffee.
• 32:39
  Steven Fischl: I didn't need galoshes and everything to go get said coffee.
• 32:42
  Steven Fischl: And then you have climate change, right?
• 32:44
  Steven Fischl: Otherwise, if it wasn't up there, there wouldn't be no point for me to stay here.
• 32:47
  Steven Fischl: I gotta talk about climate change a little bit.
• 32:49
  Steven Fischl: But we see what's going on, we know what is coming, and I think that's the difference.
• 32:53
  Steven Fischl: What Kathleen said is what insurance normally, when we price, we look at behind, we go, hey, the last five years, ten years, we know it's gonna happen.
• 33:01
  Steven Fischl: We're seeing now we can go back two years and we're like, well, maybe, and we don't know how fast it's rotating.
• 33:07
  Steven Fischl: So what happens is these reinsurers then can give out insurance to us.
• 33:11
  Steven Fischl: They're not giving out as much.
• 33:13
  Steven Fischl: Because they're saying, wow, we've had all you know issues in flooding in Australia, we've had heat issues in France, we've had this pick all over the globe.
• 33:21
  Steven Fischl: They're not willing to give out what they call catastrophe reinsurance.
• 33:25
  Steven Fischl: So if they don't give it out, we as insurers have to either increase our rates because they're gonna charge us more, or say, you know what, I need to get off some of these risks, unfortunately, because as a whole, I need to be around, right?
• 33:38
  Steven Fischl: We pool our resources, we pool our premiums, we cover loss.
• 33:42
  Steven Fischl: So either they don't give me capacity or they charge me more money.
• 33:46
  Steven Fischl: Well, then if I have to pay more, then we have our stockholders and we have to keep money up and put money in the bank, and it continues on, unfortunately, to the next person, to the next person, to the next.
• 33:57
  Steven Fischl: So either we've raised prices, restricted writing in certain locations, right, or you tighten those terms.
• 34:03
  Steven Fischl: We can say, hey, you know what?
• 34:04
  Steven Fischl: Instead of having a $10,000 deductible, you need a $100,000 deductible.
• 34:09
  Steven Fischl: Instead of having a 1% hurricane deductible, you need a 5% hurricane deductible.
• 34:14
  Steven Fischl: Because I'm still willing to offer it, but you need to now hold on to more of the risk.
• 34:17
  Steven Fischl: And that's the hard part.
• 34:18
  Steven Fischl: When we start hearing that, it's like, well, what's going on?
• 34:21
  Steven Fischl: It's our relationship to say, look, we see what's about to come, we need to prepare because when the storm does come, when we think of sandy, we think of these big storms, they will take a lot of premium.
• 34:31
  Steven Fischl: Luckily, this year, this is real wood hope, uh, there's been no major, major hurricanes that have really kind of come through and taken the US.
• 34:39
  Steven Fischl: There was stuff actually at Acapulco, if you just go look, I mean it's destroyed at this point.
• 34:44
  Steven Fischl: I've never been, it sounds like I won't be going anytime soon, unfortunately, but it does not look very good.
• 34:50
  Steven Fischl: Right?
• 34:50
  Steven Fischl: And that was a category five out of nowhere, and they were not ready.
• 34:54
  Steven Fischl: Right?
• 34:54
  Steven Fischl: We look at the wildfires in Maui.
• 34:56
  Steven Fischl: Regardless of whether it should have happened in the power plant, we're not going to get into how, but again, places that weren't experiencing things now of a sudden are experiencing rather extreme weather, and then we have to pay the claims.
• 35:07
  Steven Fischl: Now, what do we do?
• 35:08
  Steven Fischl: Do we rebuild?
• 35:08
  Steven Fischl: Do we pay?
• 35:09
  Steven Fischl: What's going on?
• 35:10
  Steven Fischl: The other part about this is that we're actually moving into harm's way.
• 35:16
  Steven Fischl: We don't want to live as humans in the middle of, sorry, if somebody's from Nebraska, uh, in the middle of Nebraska, so okay, somebody's from Nebraska, so sorry, I feel bad now.
• 35:25
  Steven Fischl: I'm like, oh no! Well, you're here.
• 35:27
  Steven Fischl: Did you move here?
• 35:28
  unknown: I did.
• 35:29
  Steven Fischl: So see, we've moved out of Nebraska, we've come on over to New Jersey, right?
• 35:33
  Steven Fischl: So I'm not faking it.
• 35:34
  Steven Fischl: I did not plant her, I didn't know she was from Nebraska.
• 35:37
  Steven Fischl: It was the state in the middle here.
• 35:39
  Steven Fischl: I could have picked Iowa.
• 35:40
  Steven Fischl: And if you're from Iowa also, I'm I'm it's just it's not working it out.
• 35:43
  Steven Fischl: So we are moving to Florida.
• 35:46
  Steven Fischl: We're moving to Texas, Galveston, Houston, those areas.
• 35:50
  Steven Fischl: Hailstorm issues, right?
• 35:51
  Steven Fischl: Minnesota, okay, it's about the same, right?
• 35:54
  Steven Fischl: Wasn't a bigger population, so you don't see it popping on the map.
• 35:58
  Steven Fischl: You see a lot from it looks like New York.
• 35:59
  Steven Fischl: Now my family's from Syracuse, so everybody's leaving Syracuse.
• 36:02
  Steven Fischl: There's nothing there, I can tell you why we're leaving.
• 36:05
  Steven Fischl: But if you look at New York City, Long Island, New Jersey, it looks like we're losing some population.
• 36:09
  Steven Fischl: It's more, but what are they doing?
• 36:10
  Steven Fischl: They're just moving down to Florida.
• 36:12
  Steven Fischl: Right?
• 36:12
  Steven Fischl: They're moving down, they're retiring, they're going somewhere else, or it's a second home, they're saying, you know what, especially during COVID, I don't need this second home.
• 36:19
  Steven Fischl: I want to be done with this.
• 36:20
  Steven Fischl: We take it, we move, we say, you know what, I'm done.
• 36:22
  Steven Fischl: I'm just gonna be in Jacksonville, I'm gonna be in Miami Pompey, like pick your location.
• 36:26
  Steven Fischl: California, not as bad, but you're getting more people in the Washington, the Wildfire, the Oregons, the Nevadas, believe it or not.
• 36:32
  Steven Fischl: If anybody's been to Lake Tahoe, Inclined Village, it is gorgeous, but there's a lot of fire issues.
• 36:38
  Steven Fischl: You go to Aspen, same issue.
• 36:39
  Steven Fischl: I mean, you'd expect trees would burn, but it hasn't burned.
• 36:42
  Steven Fischl: That's the problem.
• 36:43
  Steven Fischl: Wallfire is good in essence because if we burn things down, trees come down, we plant the seeds, we grow a new tree.
• 36:50
  Steven Fischl: Like that's a good thing.
• 36:51
  Steven Fischl: Like nature was designed.
• 36:52
  Steven Fischl: We've just moved into areas that we shouldn't have normally lived in.
• 36:56
  Steven Fischl: And now, unfortunately, nature is saying, hey, you know what?
• 36:59
  Steven Fischl: Too bad.
• 37:00
  Steven Fischl: So that's why you'll see us if you'll come and say, Hey, I need coverage for this home.
• 37:04
  Steven Fischl: You know what?
• 37:05
  Steven Fischl: I can't offer it.
• 37:06
  Steven Fischl: I can't write anymore here.
• 37:07
  Steven Fischl: I have too much.
• 37:08
  Steven Fischl: I can't do anything about it.
• 37:10
  Steven Fischl: Right?
• 37:10
  Steven Fischl: So that's when you call Jeff and go, uh Jeff, what are you gonna do for me?
• 37:14
  Steven Fischl: And he goes, I'll get back to you.
• 37:15
  Steven Fischl: Uh so we'll figure it out, but that's why you come to a broker like C Biz Borden Proman, so making sure the C Biz part.
• 37:23
  Steven Fischl: But you come to somebody who can help, who can do those things, who can find you solutions, whether it's in the admitted market where I write, in the excess market to go find somebody else, or finding somebody to help, that's the benefit of going to an independent agent, especially like them, to help you.
• 37:38
  Steven Fischl: I did also not tell them I was gonna plug them, but that is something I believe.
• 37:42
  Steven Fischl: So we'll go there.
• 37:43
  Steven Fischl: The other part, hurricanes, wildfires.
• 37:47
  Steven Fischl: Don't want to go on a diatribe about how many hurricanes and how many wildfires you can kind of see it.
• 37:52
  Steven Fischl: 2022, again, 23 is not over, so we tend to look backwards.
• 37:56
  Steven Fischl: Insurance is great at not looking at today.
• 37:57
  Steven Fischl: But we had eight hurricanes, 14 total storms.
• 38:00
  Steven Fischl: Four storms only hit the US coastline.
• 38:02
  Steven Fischl: Okay, that's four.
• 38:04
  Steven Fischl: One of them happened to be Hurricane Ian, though.
• 38:07
  Steven Fischl: And it was the third largest insured loss on record after Katrina and Harvey.
• 38:11
  Steven Fischl: Right?
• 38:12
  Steven Fischl: That's incredible when you're thinking of $113 billion in damage.
• 38:17
  Steven Fischl: I saw, so I'm a car person.
• 38:19
  Steven Fischl: Uh, you look at Naples, and I considered garages to be like aquariums.
• 38:23
  Steven Fischl: However, the fish were cars, and I saw more cars just playing bumper cars inside these garages because it was, oh, it's it's elevated, the house is okay.
• 38:34
  Steven Fischl: That garage had eight feet of water.
• 38:36
  Steven Fischl: Guess what?
• 38:36
  Steven Fischl: Most cars, unless you have a giant hummer, the majority of your cars now underwater.
• 38:41
  Steven Fischl: Salt water corrodes your engine, it's done.
• 38:43
  Steven Fischl: That's also a public statement.
• 38:45
  Steven Fischl: If you go and find a used car and it's from Naples around that time, I wouldn't buy it.
• 38:49
  Steven Fischl: Uh you probably had something wrong with it, but that's the issue.
• 38:52
  Steven Fischl: We're getting to places that have so much water, you couldn't have predicted that.
• 38:56
  Steven Fischl: Even if you bought the home and said, hey, my elevation cert, I said I was good.
• 38:59
  Steven Fischl: Right.
• 39:00
  Steven Fischl: This is the one that always surprised me when I saw it that more than 75% of federal disasters are flood.
• 39:09
  Steven Fischl: I would have thought wildfire, I could have guessed hurricane just because they're big, they affect so many people.
• 39:14
  Steven Fischl: But flooding.
• 39:15
  Steven Fischl: And it's important to think about, and Kathleen talked it a little bit, you have coastal flooding when we think of, you know, you go down to my sister-in-law is from Margate, so if you go to Margate, you can see the water and all that kind of stuff.
• 39:26
  Steven Fischl: But when we talk about Lambertville, we talk about this area here, Mercer County, I'm from Hunterdon County.
• 39:31
  Steven Fischl: You just have inundation of rain.
• 39:33
  Steven Fischl: Overnight, all of a sudden, three inches of rain, and you're like, why is there a small lake in my backyard?
• 39:39
  Steven Fischl: That's why.
• 39:39
  Steven Fischl: You woke up and it just showed up out of nowhere.
• 39:41
  Steven Fischl: You didn't have any time to prepare or think about how much rain.
• 39:45
  Steven Fischl: Right?
• 39:46
  Steven Fischl: That's an issue.
• 39:47
  Steven Fischl: And if you can see here in the past 10 years, there have been $24 billion flood events that totaled up to $90 billion.
• 39:54
  Steven Fischl: It's just staggering.
• 39:57
  Steven Fischl: And the part about that is how much of that was actually insured.
• 40:02
  Steven Fischl: Because if remember what I said in the beginning, if you didn't buy flood insurance, you're paying that out of pocket.
• 40:06
  Steven Fischl: So it's still a loss.
• 40:07
  Steven Fischl: You just might not get the recoup from your insurance company to pay for it.
• 40:11
  Steven Fischl: So there's always construction, there's always construction everywhere, I feel like.
• 40:15
  Steven Fischl: There's always roads changing, hills changing.
• 40:17
  Steven Fischl: I came from White House Station through Bridgewater and the new bypass through Hillsborough, which by the way is fantastic, because I don't have to drive 206 all the way down, but we cut into area that probably is different, right?
• 40:30
  Steven Fischl: And now where's the water run?
• 40:31
  Steven Fischl: Water is gonna run somewhere different, something's else gonna happen.
• 40:34
  Steven Fischl: We'll see.
• 40:34
  Steven Fischl: There were a lot of smart engineers who probably figured out let's do you know storm drains, let's move things to make it help.
• 40:41
  Steven Fischl: Again, but it's your you know your neighborhoods.
• 40:43
  Steven Fischl: Home is on incline.
• 40:44
  Steven Fischl: How many people here, their house is on a hill?
• 40:47
  Steven Fischl: Right, how big of a hill are you on?
• 40:50
  Steven Fischl: There's always, yeah, there's always some other person who's like, oh no, I live higher than you.
• 40:56
  Steven Fischl: You're like, okay, fine.
• 40:57
  Steven Fischl: I've seen enough, so if you actually see on the right, this is a home that's up, but again, there is always something higher.
• 41:04
  Steven Fischl: One and a half million dollar home.
• 41:06
  Steven Fischl: Water just ran in the front door.
• 41:08
  Steven Fischl: It didn't knock, it didn't ring the doorbell, it didn't say I'm coming, just rainstorm and boom.
• 41:14
  Steven Fischl: That is water if you see it.
• 41:15
  Steven Fischl: That is not glass, that's not a like interesting like image, that is literally water in the house.
• 41:20
  Steven Fischl: Um, so it was four inches of water.
• 41:22
  Steven Fischl: Um, unless you want an indoor pool, not gonna work out very well for you, but almost $200,000 in damage.
• 41:28
  Steven Fischl: Now, they had a flood policy through us, so we covered the flood.
• 41:33
  Steven Fischl: We also then covered them to live somewhere else while it was being fixed.
• 41:36
  Steven Fischl: That's the piece that I want to make sure everybody gets away from.
• 41:39
  Steven Fischl: If a risk is not covered, remember we talked about living in the hotel and living in other places.
• 41:43
  Steven Fischl: If it's not a covered loss, you also don't have cover for that.
• 41:47
  Steven Fischl: When you buy a flood policy, you are now buying back that extra coverage of staying in a hotel and not having to pay for it or whatever the terms and conditions might be.
• 41:56
  Steven Fischl: This kind of tac on where Kathleen was before in terms of 2023.
• 42:03
  Steven Fischl: Here is all of the billion dollar events so far this year, right?
• 42:08
  Steven Fischl: Through September, so we didn't get October, so maybe we miss one.
• 42:11
  Steven Fischl: And most of them are the looks like a thunderstorm, it's the severe storm.
• 42:15
  Steven Fischl: Uh, for those from the Midwest, the word Derecho is my favorite term for weather.
• 42:19
  Steven Fischl: It's a random storm, takes about 15 minutes, and it was like a tornado rip-through.
• 42:24
  Steven Fischl: And it wasn't a tornado, it was just a ton of rain.
• 42:27
  Steven Fischl: But you can see that's like, well, that's not good.
• 42:29
  Steven Fischl: You look at Minnesota hailstorm, just one day was a billion dollars because they had hail.
• 42:33
  Steven Fischl: We were talking about before.
• 42:35
  Steven Fischl: Or we can go to, this is I I like this when Noah comes out with it, spring to fall.
• 42:40
  Steven Fischl: So we're not even gonna give you a date, we're not even gonna get time, we're just gonna give you seasons, and eventually it'll end at some point.
• 42:45
  Steven Fischl: Um but it's mostly in the middle, right?
• 42:48
  Steven Fischl: We don't have anything, but even Hurricane Nadalia, these things start somewhere and then they end up coming up to the northeast, right?
• 42:54
  Steven Fischl: We end up getting some remnant of these storms, so it's just where they start, just so where you can see.
• 43:00
  Steven Fischl: We had one winter storm.
• 43:02
  Steven Fischl: There wasn't enough snow for me this year, actually, but there was something it just missed New Jersey.
• 43:05
  Steven Fischl: For those who don't like snow, you're very happy.
• 43:07
  Steven Fischl: To me, I wanted to see it, uh, but we didn't have it.
• 43:11
  Steven Fischl: And then here, just to kind of go with the whole, you know, the flooding aspect, here's a five-year comparison.
• 43:17
  Steven Fischl: So billion-dollar disasters on the left, we're talking about 14 to 18, and on the right, we're going 19 towards 2023.
• 43:24
  Steven Fischl: The majority of our flooding is happening in the Midwest, in the middle of the country.
• 43:28
  Steven Fischl: It's not happening on our coasts.
• 43:30
  Steven Fischl: It's not happening where we would think.
• 43:31
  Steven Fischl: Now, yes, there is rivers, and there's the Missouri River and the Mississippi, one that run there, but I actually know some of we have an office in O'Fallon, which is outside St.
• 43:40
  Steven Fischl: Louis.
• 43:41
  Steven Fischl: It was it looked like you know there weren't streets in front of the local coals.
• 43:44
  Steven Fischl: It was just giant water, and you needed a boat to get around.
• 43:47
  Steven Fischl: Right?
• 43:48
  Steven Fischl: That's not good, but they're nowhere near a coast.
• 43:50
  Steven Fischl: So we have to realize that these things are coming.
• 43:53
  Steven Fischl: And unfortunately, they're coming in places we wouldn't normally think.
• 43:56
  Steven Fischl: Now, just because there's no flooding on the right doesn't mean that it wasn't, we didn't have flooding.
• 43:59
  Steven Fischl: Flooding, it just wasn't in one event a billion dollars.
• 44:02
  Steven Fischl: Oh darn, right?
• 44:04
  Steven Fischl: Not good.
• 44:04
  Steven Fischl: Right?
• 44:05
  Steven Fischl: So again, when you have these disasters, it's frequent, it's costly, and it affects everyone.
• 44:11
  Steven Fischl: Right?
• 44:11
  Steven Fischl: Wildfire is coming, okay.
• 44:14
  Steven Fischl: Hurricane, there isn't too many hurricanes.
• 44:16
  Steven Fischl: Although one hurricane did hit California this year, it was very rare.
• 44:19
  Steven Fischl: The first hurricane ever in the year actually hits California before it hits anything on the East Coast.
• 44:24
  Steven Fischl: But flooding is everyone.
• 44:25
  Steven Fischl: I don't care where you live.
• 44:27
  Steven Fischl: This idea of water, and just to Kathleen's point, more water in the air, it's coming down, it's coming down whenever.
• 44:33
  Steven Fischl: So really everyone needs to look at flood policy, understand what it is.
• 44:38
  Steven Fischl: Because if you see this at the bottom, between 96 and 2019, 99% of counties in the US had a flooding event.
• 44:45
  Steven Fischl: Doesn't matter where you are, you could be the most driest airest place in the world.
• 44:49
  Steven Fischl: Actually, there's a lake in California now, it's called a dry lake.
• 44:53
  Steven Fischl: And it's it sounds weird.
• 44:55
  Steven Fischl: It used to be a lake and now it's dry.
• 44:56
  Steven Fischl: They farm and they do whatnot.
• 44:57
  Steven Fischl: They're not farming anymore, it's now a giant lake.
• 45:00
  Steven Fischl: Um, they didn't have the infrastructure ready for it, and unfortunately, now they have issues.
• 45:06
  Steven Fischl: Right?
• 45:06
  Steven Fischl: So things like where you thought where it was dry was wet.
• 45:08
  Steven Fischl: Wet is now just even wetter.
• 45:10
  Steven Fischl: For anyone who has recently bought a property or then complains about why are my flood premiums so high, are FEMA maps, right?
• 45:19
  Steven Fischl: So when you buy your home, you were flood zone A, you were told, hey, my mortgage, I have to go buy this.
• 45:23
  Steven Fischl: Most of our maps, though, unfortunately, are super out of date.
• 45:26
  Steven Fischl: Now the Army Corps of Engineers goes and does this, they've done it in Florida, you can see it's better, but if you come into New Jersey, we're talking 13, 15, 20, 30 years old.
• 45:35
  Steven Fischl: Which means that, hey, when you're seeing this, hey, my home is in a flood zone okay.
• 45:41
  Steven Fischl: Maybe not.
• 45:42
  Steven Fischl: That's just what we know from our data today.
• 45:44
  Steven Fischl: It might actually be worse, which is why it's never good to say, oh, I have no problem, right?
• 45:50
  Steven Fischl: It's kind of like saying, like, I've never been in an accident, don't wear a seatbelt.
• 45:53
  Steven Fischl: I would suggest you all wear seatbelts.
• 45:55
  Steven Fischl: Um, it's the same concept.
• 45:57
  Steven Fischl: So what you can see here, don't worry about letter and flood zones unless you happen to own a home and you know where that is.
• 46:02
  Steven Fischl: Theoretically, flood zone A home, 10 out of a thousand homes.
• 46:06
  Steven Fischl: The actual chance today, 15 and a half.
• 46:09
  Steven Fischl: Okay.
• 46:10
  Steven Fischl: Flood zone X, which is what I'd say a lot of different properties are, it should be theoretically two, but it's really 13.
• 46:18
  Steven Fischl: So those locations that we consider to be not a flood issue are actually having as just as many issues as a place that's say right on the water.
• 46:27
  Steven Fischl: So I'm gonna get out of doom and gloom.
• 46:32
  Steven Fischl: Right?
• 46:32
  Steven Fischl: We're gonna try to try to do this a little something here and say, okay, so Chubb itself has a practice called Chubb Climate Plus.
• 46:37
  Steven Fischl: You can go online, there's actually a bunch of this information that you can go see.
• 46:40
  Steven Fischl: And it's really our dedication to one, covering a lot of these new clean tech companies, covering up for things that there's no insurance for.
• 46:48
  Steven Fischl: It's a new product.
• 46:49
  Steven Fischl: Whatever they're coming out with, whether it's solar, it's wind, it's electric vehicles, it's batteries, whatever it might be, there was no product.
• 46:56
  Steven Fischl: How do we cover it?
• 46:57
  Steven Fischl: What needs to be covered?
• 46:58
  Steven Fischl: We're doing a lot of that, right?
• 47:00
  Steven Fischl: So you can see some of the companies that we're working with, and then we do it in 54 countries, which means we are all over the globe trying to do this, whether it's in Malaysia, whether it's in Japan, it's in the US, it's in Africa, it's in Europe.
• 47:12
  Steven Fischl: We're trying to help.
• 47:14
  Steven Fischl: Right?
• 47:14
  Steven Fischl: So there's no laser on this, is there?
• 47:17
  unknown: Yes.
• 47:18
  Steven Fischl: Sorry, laser, I can actually show what I'm trying to do.
• 47:20
  Steven Fischl: Like, so beyond that, our risk engineering center, right?
• 47:24
  Steven Fischl: So even if I can tell you, hey, by the way, we can make this better, we can ensure these things, we can also explain to you how to make your location resilient for the future.
• 47:34
  unknown: Right?
• 47:34
  Steven Fischl: As opposed to just we'll write you the insurance and hopefully you have something like, no, we can come out and say you should do this, you should put drainage in, you should put in water leak detection.
• 47:42
  Steven Fischl: Now that's not climate, but that's we'll come out and do these different types of things.
• 47:45
  Steven Fischl: How can we help?
• 47:46
  Steven Fischl: Right?
• 47:46
  Steven Fischl: I'd rather you not have a loss.
• 47:48
  Steven Fischl: Right?
• 47:49
  Steven Fischl: It's silly, I don't want a loss.
• 47:50
  Steven Fischl: Right?
• 47:50
  Steven Fischl: Let's try to get there.
• 47:52
  unknown: Right?
• 47:52
  Steven Fischl: So then you can kind of see all the different things.
• 47:54
  Steven Fischl: So you can, you know, talk renewable energy, transport mobility, storage and transmission, just reading through them.
• 48:00
  Steven Fischl: There's a lot of stuff that we're going over to try to do.
• 48:03
  unknown: Right?
• 48:03
  Steven Fischl: This is Chubb's commitment.
• 48:04
  Steven Fischl: Right?
• 48:05
  Steven Fischl: You can go online, you can see all of them, but again, this is what we're trying to help because we realize that we have to be at the forefront because we need to ensure this stuff so that way it can keep going.
• 48:14
  Steven Fischl: So the what can you do?
• 48:17
  Steven Fischl: Now, some of this might be like, oh yeah, I can kind of see this, but we'll take it one step further.
• 48:21
  Steven Fischl: So it's preparing for the unknown.
• 48:23
  Steven Fischl: Right?
• 48:23
  Steven Fischl: You can buy those additional products.
• 48:25
  Steven Fischl: We can talk about flood, we can talk about earthquake again, because it's moving.
• 48:28
  Steven Fischl: Actually, I saw an article right outside Pompeii.
• 48:31
  Steven Fischl: There's been earthquakes like almost all the time, and they're worried.
• 48:34
  Steven Fischl: That's my sign that I'm done?
• 48:36
  Steven Fischl: All right, folks, thank you very much.
• 48:38
  Steven Fischl: I hope you had a great evening.
• 48:39
  Steven Fischl: Um like I didn't know I was gonna get that warning, okay.
• 48:42
  Steven Fischl: Uh, but they're worried that actually the volcano I'm done, I really am done, uh, that the volcano is actually gonna erupt.
• 48:48
  Steven Fischl: So I don't know what's going on, you know, like, but there's lots of things going on.
• 48:51
  Steven Fischl: But here, you can buy extra insurance, right, to help.
• 48:54
  Steven Fischl: That way you can be prepared if something does happen.
• 48:57
  Steven Fischl: Two, we can mitigate against future risks.
• 48:59
  Steven Fischl: So, one, when we have the air conditioning units and says, hey, we're gonna put it up on a block and put it higher, we can put it higher.
• 49:05
  Steven Fischl: We don't have to go to what just code says in a building.
• 49:08
  Steven Fischl: We can make this a better building.
• 49:10
  Steven Fischl: It's that same point, you can construct homes better.
• 49:12
  Steven Fischl: So there's something called fortified home out of international billing people, and you can actually have a fortified roof.
• 49:18
  Steven Fischl: You can have it strapped down for any of those with Florida properties.
• 49:20
  Steven Fischl: You know what I'm going, we're talking about straps and we're talking about roof decking and roof attachments.
• 49:25
  Steven Fischl: We can make the homes better.
• 49:27
  Steven Fischl: It's not required, but if we make it better, then we become more resilient.
• 49:31
  Steven Fischl: And then to an insurance carrier, you become more insurable because you've actually made your house better than the average.
• 49:37
  Steven Fischl: We're more likely to try to offer insurance when we know, hey, this is a better risk, let's try to offer something up.
• 49:43
  Steven Fischl: Right?
• 49:43
  Steven Fischl: And then we talk about new transfer risk techniques.
• 49:46
  Steven Fischl: One, something called parametric insurance, which is something that you can buy that basically triggers when a certain level of damage has occurred, as opposed to just saying something has happened.
• 49:55
  Steven Fischl: And then really, it's just new products.
• 49:56
  Steven Fischl: There'll be a lot of things coming out that we're trying to figure out the new world.
• 50:00
  Steven Fischl: Um, and we'll get there.
• 50:03
  Steven Fischl: And I talked to my New York speak as fast as I could because evidently I got told I was done.
• 50:08
  Steven Fischl: Um so we do want to open up to a little bit of QA, and then we'll kind of with us, and we'll kind of go through.
• 50:19
  Kathleen Biggins: All right.
• 50:20
  Kathleen Biggins: Um gotta use the microphone, I'm sorry.
• 50:25
  Kathleen Biggins: Okay, I get the microphone.
• 50:27
  Kathleen Biggins: Let's see if I can find my question.
• 50:30
  Kathleen Biggins: Um so Steve, that was really riveting.
• 50:33
  Kathleen Biggins: And I I I love the idea of the focus on prevention.
• 50:38
  Kathleen Biggins: Um I think that's you can't hear me.
• 50:40
  Kathleen Biggins: Okay, so what I I love the idea of the focus on prevention because nature is playing by a new set of rules, and so we need to get in front of that.
• 50:49
  Kathleen Biggins: We can't always just be playing catch-up and repairing because it's going to um be very expensive and maybe even overwhelm us.
• 50:58
  Kathleen Biggins: Um so let's find my questions.
• 51:03
  unknown: Let's find out.
• 51:04
  Kathleen Biggins: I answered them all.
• 51:05
  Kathleen Biggins: There's no questions left.
• 51:06
  Steven Fischl: We're all good.
• 51:06
  Steven Fischl: We're fine.
• 51:07
  Kathleen Biggins: Well, they're good.
• 51:08
  Kathleen Biggins: Who took my questions?
• 51:10
  Kathleen Biggins: Um they're gone.
• 51:11
  Kathleen Biggins: So I'll just weigh in.
• 51:12
  Kathleen Biggins: So what um what I would love to focus on for a minute was we've talked so much about households, but a lot of people in this room are also business owners or work in businesses.
• 51:26
  Kathleen Biggins: How is insurance pivoting to cover and understand the new risks that businesses face versus just individuals?
• 51:37
  Steven Fischl: Um, for those that have it, you probably know the term, but business continuity, right?
• 51:41
  Steven Fischl: So we think about that in our own lives, like, hey, I need to make sure the computer works and all of that.
• 51:45
  Steven Fischl: But when you've got an organization that no longer can't get there, right?
• 51:49
  Steven Fischl: So when you saw the bridge that was out the road, if I can't get to work, well now I can't make money, right?
• 51:55
  Steven Fischl: If I was a restaurant, if I was something, so actually my favorite pizza place actually in Lambertville, no longer here, Liberty Hall Pizza, for anybody that knows it, um, that was my favorite, unfortunately, not here.
• 52:05
  Steven Fischl: They had taproot beer.
• 52:06
  Steven Fischl: That's my that's my that's the reason I like it.
• 52:08
  Steven Fischl: Um but if you don't have business, if you don't have flood, you don't have business continuity coverage, you don't have something to actually help from a commercial standpoint in these issues, because we can cover property, we can cover your building, we can cover your things, but it's those extra pieces.
• 52:24
  Steven Fischl: It's like, how am I going to survive if, hey, by the way, it's all flooded out.
• 52:27
  Steven Fischl: Nobody can even get to my business for three weeks.
• 52:30
  Steven Fischl: Well, then insurance can come in.
• 52:32
  Steven Fischl: You buy business continuity insurance.
• 52:34
  Steven Fischl: You buy something to be able to help, hey, when this happens, we're here for you.
• 52:38
  Steven Fischl: And I think that's the important thing is realize and there are other ways that we need to cover ourselves, not just in our stuff, but really thinking about our business people to make sure that they can continue to have a business.
• 52:49
  Steven Fischl: That's what keeps our, you know, keeps taxes going, keeps everything else going, it's a positive thing.
• 52:54
  Kathleen Biggins: Right.
• 52:54
  Kathleen Biggins: Um so one of the things that you mentioned is that people need to build things more safely.
• 53:04
  Kathleen Biggins: They need to raise their HVAC, they need to maybe raise their electric outlets.
• 53:09
  Kathleen Biggins: But what is the role of the public sector?
• 53:13
  Kathleen Biggins: What is the role of the regulators to help set the rules to enable us to understand what the safe levels are and to encourage people to build in a way that's preparing instead of repairing?
• 53:28
  Steven Fischl: From an insurance regulator, nothing, right?
• 53:30
  Steven Fischl: They're kind of like in the insurance industry.
• 53:32
  Steven Fischl: If we talk about regulators in terms of business codes or those in the government sign, it's more, hey, what can we do to make sure that our areas are there?
• 53:41
  Steven Fischl: If we think of New Jersey, Trenton, you know, it's near water, they probably want to make sure that Trenton's still a city at some point.
• 53:48
  Steven Fischl: They want to do something, right?
• 53:49
  Steven Fischl: I mean, maybe you like or don't like Trenton, that's up to you, right?
• 53:52
  Steven Fischl: But we have to say that the city is at least still there, right?
• 53:54
  Steven Fischl: So it's important.
• 53:56
  Steven Fischl: But I think about a town that it's actually in Florida, it's off the west coast.
• 54:01
  Steven Fischl: They built themselves so that they could be completely sustainable, that they didn't need anything.
• 54:05
  Steven Fischl: They have solar for all of their power.
• 54:07
  Steven Fischl: They actually had a pond and water to actually take care of all of their water.
• 54:10
  Steven Fischl: Hurricane came up, they didn't have nay a claim.
• 54:13
  Steven Fischl: Because they actually built it to say, I'm not gonna have an issue, I'm gonna build this very differently.
• 54:18
  Steven Fischl: Now, it cost more, let's not kid ourselves.
• 54:20
  Steven Fischl: When you have to go do all this, it's going to cost more money.
• 54:23
  Steven Fischl: So it then becomes a, well, can I find something?
• 54:26
  Steven Fischl: Can we make people do it more?
• 54:27
  Steven Fischl: Can we say, look, I need you to build better?
• 54:29
  Steven Fischl: I talked about fortified homes.
• 54:31
  Steven Fischl: It's kind of what Florida has done in the insurance market to say, hey, if you're gonna build here, you're gonna be built to Florida building code.
• 54:38
  Steven Fischl: It's 2001 is the last one, now they're changing it again.
• 54:41
  Steven Fischl: They're saying you need to be built better.
• 54:42
  Steven Fischl: We can't have our state just be wiped off the map.
• 54:45
  Steven Fischl: So I think that's where they're realizing, hey, we need to do something so our citizens can actually live here and actually want to move here.
• 54:53
  Kathleen Biggins: So what do you say to someone?
• 54:55
  Kathleen Biggins: And I think there's one or two in the audience who say that their family member, their friend literally can't get insurance.
• 55:01
  Kathleen Biggins: Like, where does someone turn when you know our homes are often or most usually our most valuable asset?
• 55:08
  Kathleen Biggins: Um, what happens when an individual is exposed that way?
• 55:13
  Steven Fischl: See, here's my plug-again for Jeff.
• 55:16
  Steven Fischl: Um, but there are that's I I mean the number one is your independent agent.
• 55:21
  Steven Fischl: So if you go to a different agent and you say, hey, I can just sell you X, okay, I can sell you Y.
• 55:26
  Steven Fischl: So if I you come to Chubb and they're like, hey, can Chubb write it?
• 55:29
  Steven Fischl: Let's say no.
• 55:30
  Steven Fischl: Let's pretend we're it's gonna be no.
• 55:31
  Steven Fischl: There are other markets, when I touched on a little bit the non-admitted market or the excess and surplus market, where you can go get cover.
• 55:39
  Steven Fischl: The problem is that clients will realize it, it's going to cost more and probably have less coverage.
• 55:45
  Steven Fischl: Now, I can still offer that.
• 55:47
  Steven Fischl: We do that, we're actually doing a little bit more at Chubb to try to offer some of those.
• 55:51
  Steven Fischl: It's still cover.
• 55:53
  Steven Fischl: Now, that's not going to be what you necessarily want because you want it all cover, like you want normal coverage like I've seen all along, but it's at least a way to get something.
• 56:00
  Steven Fischl: It might have more risk transfer though to you, and saying that higher deductible or less additional living expense, something else kind of taken back, and if that's okay, then at least we've given it to you.
• 56:11
  Steven Fischl: Right?
• 56:11
  Steven Fischl: Or, I mean, I hate doing it this way and saying, hey, I live in Florida, I don't want hurricane coverage.
• 56:16
  Steven Fischl: I personally wouldn't do that.
• 56:17
  Steven Fischl: There's a lot of hurricanes that wouldn't go there.
• 56:19
  Steven Fischl: But those are the techniques.
• 56:21
  Steven Fischl: The agents that you work with, especially at CBiz, they can get access to those markets.
• 56:26
  Steven Fischl: And they can say, look, I can't get you with Chubb, but I can get you with name your you know other carrier, and they can go find that.
• 56:32
  Steven Fischl: So those are kind of the options.
• 56:34
  Steven Fischl: And it might cost a lot, though, becomes the problem because now, as we're seeing, you have to keep paying more and more because nobody's willing to give out some of this.
• 56:41
  Steven Fischl: So it is tough, and I'm you know, I'm understanding of that.
• 56:46
  Kathleen Biggins: So well, in some ways, what's happening is the real cost of the risk is finally being priced into the premiums.
• 56:55
  Kathleen Biggins: And what we've had in the past is kind of a false sense of security, which also enabled people to move into those areas which are less safe.
• 57:04
  Kathleen Biggins: Because the like so much about climate change, the real costs are not yet being factored in across many different markets.
• 57:12
  Kathleen Biggins: But it's coming, and and this is, I think, the beginning of a reckoning.
• 57:16
  Kathleen Biggins: So we talked a little bit about some new innovative products.
• 57:19
  Kathleen Biggins: It look into your crystal ball and give me a sense of what you think the industry would look like in the next 20 years, or 20 years from now.
• 57:29
  Steven Fischl: I think we're still here.
• 57:31
  Steven Fischl: As much as we consider insurance to be an interesting industry, it's been around forever.
• 57:36
  Steven Fischl: Right?
• 57:36
  Steven Fischl: It is weathered through world wars, it is weathered through, it's probably a bad word to use when we're talking about climate, it's weathering.
• 57:42
  Steven Fischl: Um, but we've gotten through world wars, we've gotten through different ages.
• 57:47
  Steven Fischl: I mean, Chubb in and of itself has been around the legacy from 1882.
• 57:51
  Steven Fischl: How many different things have we gone through in the world?
• 57:53
  Steven Fischl: Ace, the other parent company has been around as well, just as long.
• 57:57
  Steven Fischl: So when you're there for a long time, we've gone through these, which is why we're trying to get ahead of it, as opposed to just waiting for it to happen.
• 58:04
  Steven Fischl: So I'd say in 20 years, we're still offering coverage, we're still giving out insurance, people can still buy insurance.
• 58:10
  Steven Fischl: It might look different in terms of what I can offer you.
• 58:13
  Steven Fischl: That's just like going to the store today and saying, hey, how come I don't see this item?
• 58:16
  Steven Fischl: Well, supply chain has made you know our Cheerios, you know, we can't go get it as fast.
• 58:21
  Steven Fischl: Well, it'll eventually come back.
• 58:22
  Steven Fischl: It's all cyclical, but we have to do our part now so that way it can come back in the future, so that way we can keep doing this.
• 58:32
  Kathleen Biggins: That's a good question because you have always been there.
• 58:34
  Kathleen Biggins: We kind of assume you always will be, but it is a contract, and we are part of that contract, and that makes a lot of sense.
• 58:41
  Kathleen Biggins: Okay, last question.
• 58:42
  Kathleen Biggins: If you were gonna move to stay safe from climate, where do you go?
• 58:49
  Steven Fischl: Syracuse, because there's nobody there, evidently, and there's nothing wrong.
• 58:52
  Steven Fischl: Uh, for those that don't know, actually, Syracuse University has the most the second city, that's the number two city with the most snowfall in the nation.
• 58:59
  Steven Fischl: It's about 180 inches of snow a year.
• 59:01
  Steven Fischl: Number one, anybody know?
• 59:03
  Steven Fischl: Nope.
• 59:04
  Steven Fischl: Flagstaff, Arizona.
• 59:07
  Steven Fischl: It is up in the mountains and it gets snow like there is no tomorrow.
• 59:12
  Steven Fischl: It actually beats out Syracuse, Buffalo, Rochester with all of that, which I'm like, sorry, there's like scorpions in desert.
• 59:18
  Steven Fischl: Like this should not be occurring in this state, but it does, but Syracuse be number two, but they've actually had less snow, which you would think is good, but now they're running out of water.
• 59:27
  Steven Fischl: That snow is actually what brought all the water to the area, so when we're not getting it, it's not good.
• 59:31
  Steven Fischl: We just see on the TV, oh, look at the football game, the Buffalo Bills got, you know, snowed out.
• 59:35
  Steven Fischl: It's one big storm, and if you don't get that, unfortunately, now we're losing.
• 59:39
  Steven Fischl: So I would move there because if there's a hurricane in Syracuse, we are in really big trouble.
• 59:44
  Kathleen Biggins: So but there may not be water.
• 59:46
  Kathleen Biggins: I don't know.
• 59:47
  Kathleen Biggins: I'm fumbling you there.
• 59:48
  Kathleen Biggins: We're okay.
• 59:48
  Kathleen Biggins: So why don't we open it up to our audience now?
• 59:53
  Kathleen Biggins: Um please speak up.
• 59:54
  Kathleen Biggins: I think Molly has a mic.
• 59:57
  Kathleen Biggins: Nope, I have a mic.
• 59:58
  Kathleen Biggins: Yay, okay.
• 59:59
  Kathleen Biggins: Um, and and who has the chocolate?
• 1:00:02
  Kathleen Biggins: We have to get the chocolate.
• 1:00:03
  Kathleen Biggins: Okay.
• 1:00:04
  Kathleen Biggins: So who who has our first question?
• 1:00:06
  Kathleen Biggins: Okay, yeah.
• 1:00:07
  Kathleen Biggins: Tanya.
• 1:00:08
  Speaker 8: Oh, do I need that tonight?
• 1:00:09
  Speaker 8: Oh, no.
• 1:00:10
  Speaker 8: I have a really loud one.
• 1:00:12
  Speaker 8: Um, I manage for my family at least five different homeowners for Chubb.
• 1:00:18
  Speaker 8: You know, it's the best.
• 1:00:22
  Speaker 8: It's definitely the best.
• 1:00:23
  Speaker 8: When you talk about changing things in your home, whether it's raising it or moving this or doing whatever, as far as Chubb is concerned, does that lower your premium or does that just allow you to get a premium?
• 1:00:44
  Steven Fischl: It depends on what we're talking about.
• 1:00:45
  Steven Fischl: Some of it is I can just give you a premium, I can give you a contract, but if I go to, I'll use Florida, similar.
• 1:00:52
  Speaker 8: Well, Florida is one of those.
• 1:00:53
  Steven Fischl: Yeah, so Florida would matter.
• 1:00:54
  Steven Fischl: So if you actually put in a better roof, there is a credit for having a better roof.
• 1:00:59
  Steven Fischl: There's a credit for having better.
• 1:01:00
  Steven Fischl: So when you have a hurricane, the roof itself can kind of lift.
• 1:01:04
  Steven Fischl: Believe it or not, it's kind of scary.
• 1:01:06
  Steven Fischl: Um, that if you have ties, as opposed to having what would be like a thumbnail, is what they call it.
• 1:01:11
  Steven Fischl: Yeah, I'd rather have straps as opposed to having that, that gives you a reduction in premium.
• 1:01:15
  Steven Fischl: You can put in, we think of like spray insulation, you can do that actually around the envelope of the inside of that attic, which means that even if it did lift, water can't get in because it's non-permeable.
• 1:01:25
  Steven Fischl: That gives you a credit.
• 1:01:27
  Speaker 8: So there are different charms.
• 1:02:27
  Steven Fischl: And that does become some of it, because you can go, you know what, I can just mitigate this, I'll just pay it myself, I'm not gonna worry about it, I'll take the risk, right?
• 1:02:34
  Steven Fischl: Because we see the short-term, I won't pay the $5,000 the $30,000 premium, we'll go South Carolina, and we'll we'll jack the premiums up here a little bit.
• 1:02:43
  Steven Fischl: And you go, ah, what's gonna happen?
• 1:02:44
  Steven Fischl: You know what?
• 1:02:45
  Steven Fischl: I'll save the money.
• 1:02:46
  Steven Fischl: And the problem is then we don't realize, oh my gosh, I shouldn't have done whatever the claim.
• 1:02:50
  Steven Fischl: You're right, so it's like I'm done.
• 1:02:52
  Steven Fischl: So I I just cannot do this and keep talking.
• 1:02:54
  Steven Fischl: Um but um I don't know, my car seems to still be there and it's not on fire.
• 1:03:01
  Steven Fischl: Um so and I think that becomes now in those areas that are cat prone, because catastrophe from a hurricane standpoint, we will say, hey, we need you to have this size home and this these characteristics, and if not, we can't, because we can't offer it then to everyone, we can offer it to, I don't want to say a select few, but a different like a subset.
• 1:03:22
  Steven Fischl: So if you had a brand new home as opposed to a home from 1910, it's gonna be built to better codes, it's gonna be built differently, right?
• 1:03:30
  Steven Fischl: Even then, if we can give you coverage, you look at flood.
• 1:03:33
  Steven Fischl: Well, if I raise my mechanicals and whatnot, you can get better flood premium.
• 1:03:36
  Steven Fischl: It does come to a point though in certain areas where a lot of people, we've seen it in Florida.
• 1:03:40
  Steven Fischl: If you see the news in California, it's occurred, where it's like companies are literally just pulling out and saying we're done.
• 1:03:47
  Steven Fischl: So it becomes a, well, then who's gonna even offer me if nobody's standing?
• 1:03:52
  Steven Fischl: There are, and there are other markets that will come, or it's that excess surplus kind of market where you can go get it, you will just now unfortunately pay even more.
• 1:04:01
  Steven Fischl: So then it becomes weighing, is the insurance of the price worth it?
• 1:04:05
  Steven Fischl: I mean, I'm always gonna say insurance is worth it.
• 1:04:08
  Steven Fischl: One, because I work for it, but two, I'm not a risk taker.
• 1:04:11
  Steven Fischl: I buy everything I humanly can because I don't want to worry about that in the future.
• 1:04:16
  Steven Fischl: Now, again, it might happen that I need to stock that's too expensive.
• 1:04:20
  Steven Fischl: It's something I'm willing to put in, but again, when we're talking about 30, 40, 50, 60, we're talking about big, big numbers.
• 1:04:26
  Steven Fischl: That becomes difficult because even now your your mortgage rates are really high, everything else keeps going, it's like, well, when is this gonna stop?
• 1:04:33
  Steven Fischl: And I think that's the hard part.
• 1:04:35
  Steven Fischl: And you gotta get your chocolate too, so make sure you get your chocolate.
• 1:04:42
  Kathleen Biggins: Okay.
• 1:04:44
  Speaker 5: Um we have right here in town on Palmer Square an outfit called Climate Central.
• 1:04:51
  Speaker 5: Well, we have they are able to pinpoint any place in this country or even to a certain extent around the world, the comparative risk and the kind of risk.
• 1:05:02
  Speaker 5: I mean, they're wrapping their minds around in a very scientific way what you can predict to a certain extent and what you can't, and they they narrow the unknown a little bit, but they're better predictors of all this.
• 1:05:17
  Speaker 5: Now that's I just wondered to what extent uh Chubb is tuned in to this kind of work, which is super sophisticated, and it's not got all the variables covered, but it it's it's better work than I know any place else.
• 1:05:32
  Speaker 5: Um and I was just curious about your position on that.
• 1:05:36
  Kathleen Biggins: Well, we should say that we have Bernadette from Climate Central right over here.
• 1:05:39
  Kathleen Biggins: Thank you, Climate Central.
• 1:05:46
  Steven Fischl: There is a lot that goes into it, and I will say we have we can either buy data, right?
• 1:05:52
  Steven Fischl: So we can go to a company and say, I need you to supply me with this information.
• 1:05:55
  Steven Fischl: You can say, hey, we're gonna make it ourselves.
• 1:05:58
  Steven Fischl: The piece, at least from the Personal lines.
• 1:06:00
  Steven Fischl: So I'll talk from personal lines, that is where I am.
• 1:06:02
  Steven Fischl: When I want to go take rate, I actually have to get our regulators to approve it.
• 1:06:07
  Steven Fischl: So whatever data I have, I have to give and they have to agree that this is something that they approve of, I can use and do something with it.
• 1:06:15
  Steven Fischl: So if I go to Florida, they're gonna say you can only use this model or this model, no one else's.
• 1:06:20
  Steven Fischl: If you go to, so to go back to the Florida piece, if you go to California, you can use this model or this model, thank you very much, it's been approved.
• 1:06:27
  Steven Fischl: So sometimes the data is nascent.
• 1:06:30
  Steven Fischl: While we like it and we understand what's going on, everybody has to come along for the ride and get to that point.
• 1:06:36
  Steven Fischl: And I think that's part of it.
• 1:06:38
  Steven Fischl: It's like, oh, we know it's coming.
• 1:06:39
  Steven Fischl: So we will look at our data.
• 1:06:41
  Steven Fischl: We will use information, whether it's from Climate Central, whether it's from ISO, Verisk, Lexus Nexus, some of these other outside vendors who can at least give us that data.
• 1:06:51
  Steven Fischl: And then whatever we can do to the best of our ability to use it.
• 1:06:54
  Steven Fischl: Now it might not be in pricing, but it could be to the point of I know where your home is.
• 1:06:59
  Steven Fischl: You know what?
• 1:06:59
  Steven Fischl: I don't want to ensure this one because it's on the side of a hill and an avalanche is going to occur.
• 1:07:03
  Steven Fischl: I don't want to cover the avalanche risk.
• 1:07:05
  Steven Fischl: But I will do this one or I will do that one.
• 1:07:07
  Steven Fischl: So there is some of it in there.
• 1:07:09
  Steven Fischl: Um it's getting everybody on board from the top to the bottom to agree that yes, this is good quote unquote data and something able to be used.
• 1:07:31
  Kathleen Biggins: Could you repeat the question?
• 1:07:32
  Kathleen Biggins: Beyond the question, yep.
• 1:07:35
  Steven Fischl: Um so the question was what's the difference between admitted and non-admitted insurance?
• 1:07:39
  Steven Fischl: So admitted insurance is what you would have today.
• 1:07:42
  Steven Fischl: You have your car insurance, hopefully, nobody here has home insurance, that isn't the non-admitted market, and it's great.
• 1:07:47
  Steven Fischl: What admitted means is that I have to file with the state all of my contracts, all of my rates, and it's all good.
• 1:07:53
  Steven Fischl: That's what you buy, that's what you can get.
• 1:07:55
  Steven Fischl: The problem comes in, as we're learning, is that sometimes there'll be a location that no one wants to write, in which they're gonna be told there's no insurance.
• 1:08:04
  Steven Fischl: What that normally will trigger an insurance person's mind is okay, I cannot get that in the admitted market, I can go to the non-admitted.
• 1:08:12
  Steven Fischl: We've heard of Lloyd's of London, that's kind of like the more famous in terms of going to a very interesting land of insurance, but that's still the same concept.
• 1:08:20
  Steven Fischl: We have that here.
• 1:08:21
  Steven Fischl: We write Chubb, excess and surplus is the term we're not admitted.
• 1:08:26
  Steven Fischl: But it normally means that the forms are still regulated, the pricing is still there a little bit, but you have a little more freedom.
• 1:08:34
  Steven Fischl: So now of a sudden your terms are different.
• 1:08:37
  Steven Fischl: So instead of having extended replacement costs where we'll repair your home no matter what, you're capped at 110%.
• 1:08:43
  Steven Fischl: It means that additional living expense that we talked about, instead of it being unlimited, 20% cap.
• 1:08:49
  Steven Fischl: So we start capping the amount of coverage, which now of course means less coverage, and then there's a premium then for that.
• 1:08:56
  Steven Fischl: So you do find the cover, and it is able to be, I'll say, adjusted differently than in the admitted market.
• 1:09:03
  Steven Fischl: Again, we still file, the states still know what we're offering up, but it's a way in which you can get a little more leeway and find ways to find cover.
• 1:09:11
  Steven Fischl: Does that help, Kathy, in terms of Ross?
• 1:09:16
  Kathleen Biggins: Ross?
• 1:09:16
  Kathleen Biggins: Who's over there?
• 1:09:22
  Speaker 4: Whatever the condition they're currently in front of.
• 1:09:26
  Speaker 4: But Kathy, the the issue here is hugely political.
• 1:09:35
  Speaker 4: And polarizing.
• 1:09:41
  Speaker 4: And uh but there has to be an entire reset so that all these conditions become you know less volatile.
• 1:09:51
  Speaker 4: How do you get these two knucklehead parties together?
• 1:09:56
  Speaker 4: Or the world, forget that, the whole world, to start talking the same language, because it it doesn't really seem like it's going in that direction.
• 1:10:07
  Kathleen Biggins: Well, I um I should probably hand this over to Bernadette because she is the expert who has been to all the cops um in Dubai.
• 1:10:15
  Kathleen Biggins: We're going to our first one in um December, but she's seeing it in action.
• 1:10:20
  Kathleen Biggins: But I I can only talk a little bit about my experience traveling the country, and that's not the world.
• 1:10:27
  Kathleen Biggins: Everybody wants the same thing.
• 1:10:29
  Kathleen Biggins: Everybody wants a healthy, prosperous future for their kids, and they want a prosperous current life for themselves.
• 1:10:38
  Kathleen Biggins: And they want to have a sense of optimism and a sense that they can grow and achieve more.
• 1:10:44
  Kathleen Biggins: That's universal.
• 1:10:46
  Kathleen Biggins: There is a narrative that is that climate action harms that, dampens that, precludes that, harms future generation because you're using money now that if we strengthen the economy would enable them to handle it better in the future, and the risks are perhaps overblown.
• 1:11:06
  Kathleen Biggins: But that narrative is not holding up as the world around us is burning up, right?
• 1:11:16
  Kathleen Biggins: The storms, the burning, the people are noticing, and what I'm hearing a lot more people say, oh, of course it's happening.
• 1:11:22
  Kathleen Biggins: And and I gotta tell you, three years ago, I heard a lot more people say, I'm not sure it's happening.
• 1:11:26
  Kathleen Biggins: It's happening.
• 1:11:27
  Kathleen Biggins: What they aren't as positive of is how much of it is human-influenced and how expensive will it be to address it.
• 1:11:36
  Kathleen Biggins: And again, as I mentioned in the intro, we have a way now of kind of showcasing the fact that the economic story is really with taking action.
• 1:11:46
  Kathleen Biggins: It is a little bit of upfront investment, but on the other side, there's a lot of savings, and you have anciliary savings across healthcare, across pollution, and in lessening these externalities from climate change.
• 1:12:00
  Kathleen Biggins: And that, coupled with the jobs that are coming, is definitely changing the narrative.
• 1:12:05
  Kathleen Biggins: They still don't want the words climate change, but use the words emission, use the word sustainability, use the word conservation.
• 1:12:12
  Kathleen Biggins: And the fact that businesses are making the changes, irrespective of what we're reading in the newspapers, they are making the changes internally and they are driving those changes within the states, sometimes forcing utilities to move a lot faster than they would.
• 1:12:29
  Kathleen Biggins: So I'm a little more sanguine than you are, and I have to be to keep getting on a plane, and I think our team has to be to continue the work we are that we're doing.
• 1:12:38
  Speaker 6: So, Dan One of the things that I'm seeing in the in the as an implication of the insurance transition that you're going through is that insurance is, well, I guess it always has been, but it's becoming more so something that only people with money can afford.
• 1:13:00
  Speaker 6: And we're going to exacerbate the split in societies at the same time where many of these places that are very much at risk are not helping.
• 1:13:13
  Speaker 6: Right?
• 1:13:14
  Speaker 6: The Newarks, the Jersey cities, the Atlantic cities, the all over the place worldwide.
• 1:13:21
  Speaker 6: How is the insurance company reacting to that societal schism between those who can afford to insure and those who cannot?
• 1:13:35
  Steven Fischl: Repeat the question, please.
• 1:13:36
  Steven Fischl: So the question is, do I want to put myself into a hole and make myself sound awful?
• 1:13:40
  Steven Fischl: No, um the question is the rich get richer and the poor get poorer is kind of a short trip short version of that statement.
• 1:13:48
  Steven Fischl: A fair, I mean, like, but it's you can't afford the insurance.
• 1:13:52
  Steven Fischl: So when I don't have it because costs keep going up, at some point they're living at a certain level, and it's gone above that mean where somebody with a lot of money might have more expendable income to get there.
• 1:14:01
  Steven Fischl: I I think it's tough.
• 1:14:04
  Steven Fischl: I mean, it's to me, I'm like, I'm not sure.
• 1:14:06
  Steven Fischl: I mean, we all have a place to be able to offer insurance, to be able to give it out, and then you're gonna get to a point where, hey, then maybe it does become a a government issue.
• 1:14:15
  Steven Fischl: Like we have FEMA, as much as that every time the government says they're not going to fund something, FEMA goes into a in you know, into a Tizzy.
• 1:14:23
  Steven Fischl: It's like we're not gonna have any money to pay for stuff.
• 1:14:25
  Steven Fischl: It might be something like that.
• 1:14:26
  Steven Fischl: It could be community pools where you could say, hey, you know what, this whole area, the city is going to insure block X, block Y, and these are like the to be determined.
• 1:14:36
  Steven Fischl: I'm off the top of my head, they'll use the crystal ball.
• 1:14:38
  Steven Fischl: Hey, you know what?
• 1:14:39
  Steven Fischl: The city of Newark will ensure block seven, and it's gonna be insured for this much, and everybody will be able to pool and will be part of that.
• 1:14:45
  Steven Fischl: So you'll have something.
• 1:14:46
  Steven Fischl: Now it might not cover everything you have.
• 1:14:49
  Steven Fischl: Again, I'm off the top of my head here.
• 1:14:51
  Steven Fischl: That might be a way, right?
• 1:14:52
  Steven Fischl: We can partner public and private together to solve the problem because one isn't gonna be able to solve it without the other.
• 1:14:59
  Steven Fischl: We're all gonna have to kind of be in it together.
• 1:15:01
  Steven Fischl: So that's a way.
• 1:15:02
  Steven Fischl: Um, I don't know, it is actually it's a great question, and I'm not sure we all have the answer yet to figure out because I do agree we will have this dichotomy of moving apart for everything, all of society, no matter what we're talking about.
• 1:15:17
  Steven Fischl: Right?
• 1:15:17
  Steven Fischl: So it is something that we need to be careful of.
• 1:15:21
  Kathleen Biggins: Okay, I think we're just about out of time.
• 1:15:23
  Kathleen Biggins: Um unless there is tell you what, we're gonna just on that, can I just comment on that?
• 1:15:30
  Speaker 8: So have you lost, has Chubb lost, I won't say revenue because your revenue goes up, but customers because your premiums have gone up, I mean it's sort of going on to what he says.
• 1:15:43
  Speaker 8: The ones that could afford it to a point, now they can't afford it anymore.
• 1:15:48
  Steven Fischl: We'll always, I'll use the word churn.
• 1:15:50
  Steven Fischl: So customers will come in, they'll say, hey, I can't pay for that, I'm gonna go to state pharma.
• 1:15:54
  Steven Fischl: Again, I'm using Chubb as a high net worth, and I'm gonna go to your more middle market carrier, right?
• 1:15:58
  Steven Fischl: Or I'm gonna go to travelers.
• 1:15:59
  Steven Fischl: And they'll go for less premium because, like, hey, I need to save the money now.
• 1:16:03
  Steven Fischl: I'll take the difference in condition on the contract or something.
• 1:16:06
  Steven Fischl: We will.
• 1:16:07
  Steven Fischl: Right now, do we want to lose them?
• 1:16:09
  Steven Fischl: No, we'd rather not lose anyone.
• 1:16:12
  Steven Fischl: And but if I don't charge the premium, then I can't insure it for everybody.
• 1:16:15
  Steven Fischl: So it does become a pooling effect.
• 1:16:17
  Steven Fischl: Again, insurance is the hey, everybody pools in for everybody.
• 1:16:20
  Steven Fischl: Unfortunately, it's like 80% of your premium is 20% of your, you know, like that whole 80-20 rule.
• 1:16:25
  Steven Fischl: It that also then doesn't feel fair in the long run.
• 1:16:28
  Steven Fischl: You're like, but I'm part of that 80 who needs the cover but doesn't have any problems.
• 1:16:32
  Steven Fischl: It is tough, right?
• 1:16:34
  Steven Fischl: And we will get there, and there were people, I mean, I'm sure, you know, C Biz can more say how many times do you get a call to remarket an account because oh my gosh, my premium's gone up X and help me.
• 1:16:43
  unknown: Every day, right?
• 1:16:45
  Steven Fischl: Yeah.
• 1:16:45
  Steven Fischl: So it's you know, it is tough.
• 1:16:49
  Kathleen Biggins: Thank you, Steve.
• 1:16:50
  Kathleen Biggins: Thank you, Steve.
• 1:16:50
  Kathleen Biggins: Thank you, C Biz.
• 1:16:52
  Kathleen Biggins: Thank you, Chubb.
• 1:16:53
  Kathleen Biggins: Thank you all for being we we so appreciate you giving us your time and attention, and we will keep you informed of our next fun um elaboration of climate change and thank you.
• 1:17:14
  Kathleen Biggins: Thank you.