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Tropical Cyclones in a Warmer World 14th October, 2004 Dr Mark Saunders, UCL-BHRC Natural Hazards in a Warmer World Workshop for Under 35s Reinsurance Group 1 TROPICAL CYCLONES IN A TROPICAL CYCLONES IN A WARMER WORLD WARMER WORLD Dr Mark Saunders Dr Mark Saunders Benfield Benfield Hazard Research Centre Hazard Research Centre Department of Space and Climate Physics Department of Space and Climate Physics University College London University College London Natural Hazards in a Warmer World Natural Hazards in a Warmer World Workshop for Under 35s Reinsurance Group Workshop for Under 35s Reinsurance Group 14th October 2004 14th October 2004 NATURAL HAZARDS IN A WARMER WORLD Slide 2 Regional Occurrence Regional Occurrence

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Page 1: TROPICAL CYCLONES IN A WARMER WORLDww.tropicalstormrisk.com/docs/BHRCWorkshop14102004.pdf · Tropical Cyclones in a Warmer World 14th October, 2004 Dr Mark Saunders, UCL-BHRC Natural

Tropical Cyclones in a Warmer World 14th October, 2004Dr Mark Saunders, UCL-BHRC

Natural Hazards in a Warmer WorldWorkshop for Under 35s Reinsurance Group 1

TROPICAL CYCLONES IN ATROPICAL CYCLONES IN AWARMER WORLDWARMER WORLD

Dr Mark SaundersDr Mark Saunders

Benfield Benfield Hazard Research CentreHazard Research CentreDepartment of Space and Climate PhysicsDepartment of Space and Climate Physics

University College LondonUniversity College London

Natural Hazards in a Warmer WorldNatural Hazards in a Warmer WorldWorkshop for Under 35s Reinsurance GroupWorkshop for Under 35s Reinsurance Group

14th October 200414th October 2004

NATURAL HAZARDS IN A WARMER WORLD Slide 2

Regional OccurrenceRegional Occurrence

Page 2: TROPICAL CYCLONES IN A WARMER WORLDww.tropicalstormrisk.com/docs/BHRCWorkshop14102004.pdf · Tropical Cyclones in a Warmer World 14th October, 2004 Dr Mark Saunders, UCL-BHRC Natural

Tropical Cyclones in a Warmer World 14th October, 2004Dr Mark Saunders, UCL-BHRC

Natural Hazards in a Warmer WorldWorkshop for Under 35s Reinsurance Group 2

NATURAL HAZARDS IN A WARMER WORLD Slide 3

Relevance for (Re)InsurersRelevance for (Re)Insurersll U.S. and CaribbeanU.S. and Caribbean.. Rank as theRank as the

regionregion’’s s costliest natural disastercostliest natural disaster..

ll AsiaAsia.. Rank as the Rank as the most costly andmost costly anddeadly natural disasterdeadly natural disaster affecting much affecting muchof Japan, South Korea, Taiwan, theof Japan, South Korea, Taiwan, thePhilippines, and coastal areas in otherPhilippines, and coastal areas in otherSE Asian countries.SE Asian countries.

ll Australia and SW PacificAustralia and SW Pacific. Rank as a. Rank as asignificant cause of natural disastersignificant cause of natural disasterloss.loss.

NATURAL HAZARDS IN A WARMER WORLD Slide 4

LossesLosses

ll U.S.U.S. Hurricane annualHurricane annualdamage bill 1950-2003 isdamage bill 1950-2003 isestimated as US $ 5.1 estimated as US $ 5.1 bnbn(economic), US $ 2.6(economic), US $ 2.6(insured) at 2004 $.(insured) at 2004 $.

ll Asia.Asia. Typhoon annual Typhoon annualdamage bill (1990-2001)damage bill (1990-2001)is US $3.5 is US $3.5 bn bn (economic)(economic)at 2004 $.at 2004 $.

Taiwan - 2000Taiwan - 2000

US East Coast - 2003US East Coast - 2003

IsabelIsabel

Page 3: TROPICAL CYCLONES IN A WARMER WORLDww.tropicalstormrisk.com/docs/BHRCWorkshop14102004.pdf · Tropical Cyclones in a Warmer World 14th October, 2004 Dr Mark Saunders, UCL-BHRC Natural

Tropical Cyclones in a Warmer World 14th October, 2004Dr Mark Saunders, UCL-BHRC

Natural Hazards in a Warmer WorldWorkshop for Under 35s Reinsurance Group 3

NATURAL HAZARDS IN A WARMER WORLD Slide 5

U.S. Damaging Storms 2004U.S. Damaging Storms 2004

Courtesy of NOAA and UW-CIMSSCourtesy of NOAA and UW-CIMSS

NATURAL HAZARDS IN A WARMER WORLD Slide 6

Where Does 2004 Rank?Where Does 2004 Rank?

North Atlantic ACE (Accumulated CycloneNorth Atlantic ACE (Accumulated CycloneEnergy) indexEnergy) index::

3rd3rd highest (after 1950 and 1995) since 1950. highest (after 1950 and 1995) since 1950.

U.S. ACE indexU.S. ACE index:: 2nd2nd highest (after 1964) since 1950. highest (after 1964) since 1950.

U.S. hurricane total insured lossU.S. hurricane total insured loss:: 2nd2nd highest (after 1992) since 1950. highest (after 1992) since 1950.

Tropical storm strikes on JapanTropical storm strikes on Japan:: Equal 1stEqual 1st for most (records since 1970). for most (records since 1970).

Page 4: TROPICAL CYCLONES IN A WARMER WORLDww.tropicalstormrisk.com/docs/BHRCWorkshop14102004.pdf · Tropical Cyclones in a Warmer World 14th October, 2004 Dr Mark Saunders, UCL-BHRC Natural

Tropical Cyclones in a Warmer World 14th October, 2004Dr Mark Saunders, UCL-BHRC

Natural Hazards in a Warmer WorldWorkshop for Under 35s Reinsurance Group 4

NATURAL HAZARDS IN A WARMER WORLD Slide 7

Return Periods - 2004Return Periods - 2004

U.S. hurricane strikesU.S. hurricane strikes(4 or more):(4 or more): 17 years.17 years.

U.S. ACE index (7.5 xU.S. ACE index (7.5 x101044 kts kts22):): 40 years. 40 years.

U.S. hurricane totalU.S. hurricane totalinsured loss (US $insured loss (US $22bn):22bn): 37 years (see opposite).37 years (see opposite).

HiltiHilti, Saunders and Lloyd-Hughes (2004), Saunders and Lloyd-Hughes (2004)

NATURAL HAZARDS IN A WARMER WORLD Slide 8

How has Tropical CycloneHow has Tropical CycloneActivity Varied in the Past?Activity Varied in the Past?

Page 5: TROPICAL CYCLONES IN A WARMER WORLDww.tropicalstormrisk.com/docs/BHRCWorkshop14102004.pdf · Tropical Cyclones in a Warmer World 14th October, 2004 Dr Mark Saunders, UCL-BHRC Natural

Tropical Cyclones in a Warmer World 14th October, 2004Dr Mark Saunders, UCL-BHRC

Natural Hazards in a Warmer WorldWorkshop for Under 35s Reinsurance Group 5

NATURAL HAZARDS IN A WARMER WORLD Slide 9

North Atlantic ACE indexNorth Atlantic ACE index1950-20031950-2003Atlantic Total ACE Index

0

50

100

150

200

250

1950 1960 1970 1980 1990 2000

NATURAL HAZARDS IN A WARMER WORLD Slide 10

NE Pacific ACE indexNE Pacific ACE index1966-20031966-2003NE Pacific ACE Index

0

50

100

150

200

250

300

350

1966 1971 1976 1981 1986 1991 1996 2001

Page 6: TROPICAL CYCLONES IN A WARMER WORLDww.tropicalstormrisk.com/docs/BHRCWorkshop14102004.pdf · Tropical Cyclones in a Warmer World 14th October, 2004 Dr Mark Saunders, UCL-BHRC Natural

Tropical Cyclones in a Warmer World 14th October, 2004Dr Mark Saunders, UCL-BHRC

Natural Hazards in a Warmer WorldWorkshop for Under 35s Reinsurance Group 6

NATURAL HAZARDS IN A WARMER WORLD Slide 11

NW Pacific ACE indexNW Pacific ACE index1965-20031965-2003NW Pacific ACE Index

0

100

200

300

400

500

600

1965 1970 1975 1980 1985 1990 1995 2000

NATURAL HAZARDS IN A WARMER WORLD Slide 12

U.S. ACE index 1900-2003U.S. ACE index 1900-2003US ACE Index

0

1

2

3

4

5

6

7

8

9

10

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000

Page 7: TROPICAL CYCLONES IN A WARMER WORLDww.tropicalstormrisk.com/docs/BHRCWorkshop14102004.pdf · Tropical Cyclones in a Warmer World 14th October, 2004 Dr Mark Saunders, UCL-BHRC Natural

Tropical Cyclones in a Warmer World 14th October, 2004Dr Mark Saunders, UCL-BHRC

Natural Hazards in a Warmer WorldWorkshop for Under 35s Reinsurance Group 7

NATURAL HAZARDS IN A WARMER WORLD Slide 13

Florida ACE indexFlorida ACE index1900-20031900-2003Florida ACE Index

0

1

2

3

4

5

6

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000

NATURAL HAZARDS IN A WARMER WORLD Slide 14

Japan ACE indexJapan ACE index1959-20031959-2003Japan ACE Index

0

1

2

3

4

5

6

1959 1969 1979 1989 1999

Page 8: TROPICAL CYCLONES IN A WARMER WORLDww.tropicalstormrisk.com/docs/BHRCWorkshop14102004.pdf · Tropical Cyclones in a Warmer World 14th October, 2004 Dr Mark Saunders, UCL-BHRC Natural

Tropical Cyclones in a Warmer World 14th October, 2004Dr Mark Saunders, UCL-BHRC

Natural Hazards in a Warmer WorldWorkshop for Under 35s Reinsurance Group 8

NATURAL HAZARDS IN A WARMER WORLD Slide 15

Australian ACE indexAustralian ACE index1970/1-2003/41970/1-2003/4Australia ACE Index

0

2

4

6

8

10

12

1970 1975 1980 1985 1990 1995 2000

NATURAL HAZARDS IN A WARMER WORLD Slide 16

Significant Trend orSignificant Trend orChange in Variance?Change in Variance?

ll No significant change in ACE index or ACENo significant change in ACE index or ACEindex variance is observed anywhereindex variance is observed anywhere, either, eitherover the full period or, for the U.S., using theover the full period or, for the U.S., using therecent 1978-2003 period compared to priorrecent 1978-2003 period compared to prior26-year periods.26-year periods.

ll The change in ACE index due to naturalThe change in ACE index due to naturalclimate variability is everywhere an climate variability is everywhere an order oforder ofmagnitude greatermagnitude greater than that which may be than that which may beattributable to trend in the historical record.attributable to trend in the historical record.

Page 9: TROPICAL CYCLONES IN A WARMER WORLDww.tropicalstormrisk.com/docs/BHRCWorkshop14102004.pdf · Tropical Cyclones in a Warmer World 14th October, 2004 Dr Mark Saunders, UCL-BHRC Natural

Tropical Cyclones in a Warmer World 14th October, 2004Dr Mark Saunders, UCL-BHRC

Natural Hazards in a Warmer WorldWorkshop for Under 35s Reinsurance Group 9

NATURAL HAZARDS IN A WARMER WORLD Slide 17

ConclusionsConclusions

1.1. Global warming has, at present, had Global warming has, at present, had little orlittle orno increasing impactno increasing impact on northern hemisphere on northern hemispheretropical cyclone activity.tropical cyclone activity.

2.2. Observed changes in activity are dueObserved changes in activity are duepredominantly to predominantly to natural climate variabilitynatural climate variability..

NATURAL HAZARDS IN A WARMER WORLD Slide 18

Multi-Decadal VariabilityMulti-Decadal Variability

Leading mode of AtlanticLeading mode of Atlanticnon-ENSO SST variabilitynon-ENSO SST variability1870-2000.1870-2000.

(Goldenberg et al., Science, 2001)(Goldenberg et al., Science, 2001)

TemporalTemporalreconstruction ofreconstruction ofSST mode-relatedSST mode-related

variability forvariability forhurricane mainhurricane main

development region.development region.

Page 10: TROPICAL CYCLONES IN A WARMER WORLDww.tropicalstormrisk.com/docs/BHRCWorkshop14102004.pdf · Tropical Cyclones in a Warmer World 14th October, 2004 Dr Mark Saunders, UCL-BHRC Natural

Tropical Cyclones in a Warmer World 14th October, 2004Dr Mark Saunders, UCL-BHRC

Natural Hazards in a Warmer WorldWorkshop for Under 35s Reinsurance Group 10

NATURAL HAZARDS IN A WARMER WORLD Slide 19

What is our Current UnderstandingWhat is our Current Understandingof How Tropical Cyclone Activityof How Tropical Cyclone ActivityWill Vary in the Future?Will Vary in the Future?

NATURAL HAZARDS IN A WARMER WORLD Slide 20

Atlantic Hurricane PredictorsAtlantic Hurricane Predictors

SST PredictorSST PredictorTrade Wind PredictorTrade Wind Predictor

Page 11: TROPICAL CYCLONES IN A WARMER WORLDww.tropicalstormrisk.com/docs/BHRCWorkshop14102004.pdf · Tropical Cyclones in a Warmer World 14th October, 2004 Dr Mark Saunders, UCL-BHRC Natural

Tropical Cyclones in a Warmer World 14th October, 2004Dr Mark Saunders, UCL-BHRC

Natural Hazards in a Warmer WorldWorkshop for Under 35s Reinsurance Group 11

NATURAL HAZARDS IN A WARMER WORLD Slide 21

Hurricane Numbers 1950-2004Hurricane Numbers 1950-2004Tropical Atlantic, Caribbean Sea and GulfTropical Atlantic, Caribbean Sea and Gulf

PerfectPerfectPredictorsPredictors

RR22 = 0.67 = 0.67

NATURAL HAZARDS IN A WARMER WORLD Slide 22

Future Projections for Tropical Atlantic,Future Projections for Tropical Atlantic,Caribbean and Gulf Caribbean and Gulf HurricaneHurricane Numbers Numbers

Page 12: TROPICAL CYCLONES IN A WARMER WORLDww.tropicalstormrisk.com/docs/BHRCWorkshop14102004.pdf · Tropical Cyclones in a Warmer World 14th October, 2004 Dr Mark Saunders, UCL-BHRC Natural

Tropical Cyclones in a Warmer World 14th October, 2004Dr Mark Saunders, UCL-BHRC

Natural Hazards in a Warmer WorldWorkshop for Under 35s Reinsurance Group 12

NATURAL HAZARDS IN A WARMER WORLD Slide 23

Future Projections for Tropical Atlantic,Future Projections for Tropical Atlantic,Caribbean and Gulf Caribbean and Gulf Intense Hurricane Intense Hurricane NosNos

NATURAL HAZARDS IN A WARMER WORLD Slide 24

Future Projections for TropicalFuture Projections for TropicalAtlantic SSTAtlantic SST

Page 13: TROPICAL CYCLONES IN A WARMER WORLDww.tropicalstormrisk.com/docs/BHRCWorkshop14102004.pdf · Tropical Cyclones in a Warmer World 14th October, 2004 Dr Mark Saunders, UCL-BHRC Natural

Tropical Cyclones in a Warmer World 14th October, 2004Dr Mark Saunders, UCL-BHRC

Natural Hazards in a Warmer WorldWorkshop for Under 35s Reinsurance Group 13

NATURAL HAZARDS IN A WARMER WORLD Slide 25

Hurricane IntensityHurricane IntensityKnutson and Knutson and Tuleya Tuleya (2004) in a detailed GCM(2004) in a detailed GCMmodeling modeling study predict:study predict:

1.1. 6% increase in hurricane maximum intensity6% increase in hurricane maximum intensity with withan 80% increase in COan 80% increase in CO22. This is line with theoretical. This is line with theoreticalestimates by Emanuel.estimates by Emanuel.

2.2. 18% increase in mean precipitation rate18% increase in mean precipitation rate within within100km of the storm centre.100km of the storm centre.

These changes may not be detectable for a fewThese changes may not be detectable for a fewdecades.decades.

NATURAL HAZARDS IN A WARMER WORLD Slide 26

ConclusionsConclusions

1.1. The number of North Atlantic, U.S. andThe number of North Atlantic, U.S. andCaribbean hurricanes may Caribbean hurricanes may rise slowlyrise slowly due to due toglobal warming.global warming.

2.2. However, the increase in the number ofHowever, the increase in the number ofhurricanes and in hurricane maximumhurricanes and in hurricane maximumintensity over the next 100 years is intensity over the next 100 years is thought tothought tobe be about 10%about 10% and thus is smalland thus is small compared tocompared tothe range of natural year-to-year variability.the range of natural year-to-year variability.

Page 14: TROPICAL CYCLONES IN A WARMER WORLDww.tropicalstormrisk.com/docs/BHRCWorkshop14102004.pdf · Tropical Cyclones in a Warmer World 14th October, 2004 Dr Mark Saunders, UCL-BHRC Natural

Tropical Cyclones in a Warmer World 14th October, 2004Dr Mark Saunders, UCL-BHRC

Natural Hazards in a Warmer WorldWorkshop for Under 35s Reinsurance Group 14

NATURAL HAZARDS IN A WARMER WORLD Slide 27

2004 In Context2004 In ContextThe historical recordThe historical recordshows repeated quietshows repeated quietand active periods forand active periods forU.S. hurricanes.U.S. hurricanes.

Since 1999, U.S.Since 1999, U.S.hurricane strikes havehurricane strikes havebeen running been running 50%50%below averagebelow average and andU.S. hurricane insuredU.S. hurricane insuredlosses losses 80% below80% belownorm.norm.

2004 has seen the recent hurricane 2004 has seen the recent hurricane ‘‘dry spelldry spell’’ corrected. corrected.

NATURAL HAZARDS IN A WARMER WORLD Slide 28

Future Risk to (Re)Insurers?Future Risk to (Re)Insurers?

Although uncertainties remain, the vastAlthough uncertainties remain, the vastmajority of future hurricane losses in the U.S.majority of future hurricane losses in the U.S.and Caribbean are thought to continue to resultand Caribbean are thought to continue to resultfrom from natural natural interannual interannual and decadal climateand decadal climatevariability and not from global warmingvariability and not from global warming..

Since traditional insurance policies are set forSince traditional insurance policies are set forthe year ahead (or at most out to five years)the year ahead (or at most out to five years)the impact of global warming on risk over thisthe impact of global warming on risk over thistimescale will be timescale will be small or negligiblesmall or negligible..