- Catastrophe Models Become Macro-Prudential Concern, Report Warns
Global insurance regulators warn that inconsistent modeled probable maximum loss (PML) standards and widening data gaps in emerging markets are turning catastrophe modeling into a macro-prudential concern as protection gaps deepen and risks shift toward governments and banks.
- KKR’s Insurance ROE Has Wall Street Scratching Its Head
Wall Street analysts spent much of KKR’s earnings call dissecting how Global Atlantic’s earnings flow through the firm’s books, and what that means for its 20%+ insurance ROE target.
- Fed Flags Life Insurers’ Leverage as Firms Deepen Private-Credit Exposure, but Insurers Say Risks Are Managed
The Federal Reserve warns life insurers’ leverage is at historically high levels, but executives say their balance sheets and private-credit exposures remain disciplined and capital-efficient.
- Physical Risk Models Face Critical Gaps in Translating Climate Science to Fiscal Policy
As nations prepare for COP 30 in Brazil, finance ministers warn that despite sophisticated climate risk modeling, a critical gap remains between scientific projections and the fiscal planning tools needed to fund adaptation commitments.
- Zohran Mamdani’s Housing Plan Will Face New York City’s Flood Risk Reality
New York’s push for 200,000 new affordable homes under Zohran Mamdani’s plan collides with data showing rapidly expanding flood risk now engulfing both coastal and inland neighborhoods.
- AIG Urges Patience on $5B Cash Pile as Analysts Press for Deal Returns, Buybacks
The market is pushing AIG for tangible profit acceleration.
As California’s wildfire crisis deepens, various industry players are offering starkly different blueprints to backstop the state’s growing liability risk tied to catastrophic fires and its expanding AI-driven power demands.
Proposals range from the massive, such as creating a state-backed catastrophe reinsurer to replace waning private market capacity, to the technical, including data and model mandates designed to improve how risk is measured and priced.
Their plans, submitted under the California Earthquake Authority’s Natural Catastrophe Resiliency Study as part of recently enacted wildfire legislation (Senate Bill 254), reveal a high-stakes contest over who pays, who mitigates, and how risk should be shared among the public, utilities, and the insurance and reinsurance markets.
Whatever the outcome, investors like Greenlight Capital’s David Einhorn are already betting on deal that will rebound for California’s energy industry to meeting the state's AI-driven power deman.
