Analysis: The destruction and damage caused by future storms, flooding and heatwaves will impact hugely on both sectorsWhen Storm Isha hit in January 2024, wind gusts of almost 100mph caused widespread damage to property. This strong extra-tropical cyclone also influenced both the insurance and energy sectors. Isha resulted in damages which required the insurance industry to pay out approximately €500 million across Ireland and the UK.
From RTÉ Radio 1's Drivetime, round-up of the damage and disruption caused across Ireland by Storm Isha We need your consent to load this rte-player contentWe use rte-player to manage extra content that can set cookies on your device and collect data about your activity. Please review their details and accept them to load the content.Manage PreferencesFocusing on the insurance sector, extreme weather events are of interest due to the potential to cause destruction and damages that need to be financially covered.
We need your consent to load this rte-player contentWe use rte-player to manage extra content that can set cookies on your device and collect data about your activity. Please review their details and accept them to load the content.Manage Preferences Another factor to consider for insurers is the affected area and the economic exposure. Strong wind gusts and heavy precipitation from a hurricane over the Gulf of Mexico, or even sparsely populated parts of the US coastline, have little impact. But a hurricane impacting a built-up metropolitan area will lead to huge damages and loss of life.
Extreme weather also influences the amount of renewable electricity being generated by wind, solar and hydropower. Wind droughts – low wind periods – are of particular concern. A prolonged wind drought from April to September 2021 affected the UK, Ireland and other parts of western Europe, with wind speeds almost 15% lower than average. This means that more gas has to be burned to produce enough electricity to meet demand.
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