Climate Change 2001:
Working Group II: Impacts, Adaptation and Vulnerability
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Figure 15-8: Reductions in claims payable, by size of loss. Ability of U.S. property-casualty insurance sector, as a whole, to pay claims over a wide range of losses. The chart shows four views, encompassing changes in capacity between 1991 and 1997 and whether companies have access to resources of groups that own them. Groups are not obligated to pay losses experienced by individual member firms but retain the option to do so. Together, these four scenarios represent a range of ability to pay losses. For example, for a US$155 billion loss year—a recent estimate of probable maximum loss (PML) (GAO, 2000) could be several events combined, including weather- and nonweather-related ones—65 to 90% of claims would be paid (adapted from Cummins et al., 1999). PML benchmarks are from GAO (2000).

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