The economic impact of natural disasters in the US 

For those living in vulnerable areas to extreme weather disasters, recent years have seen some of the worst disasters. In 2024, we have seen severe weather disasters such as, the floods in Afghanistan- Pakistan, typhoon in Japan, the recent hurricane in Florida and more. Now, hurricane Milton is causing severe warnings and evacuations in Florida as they still face the outcome of their last hurricane, Helene. 

These disasters cause destruction to lives, families, property and more and the cost of repairing this once they can is substantial. We have taken a dive into the cost to the US economy, businesses and individuals when they are hit by a natural disaster 

The cost of weather disasters in the US 

Between 2020-2022 there were 60 natural disasters which cost over $1 billion in losses. With the worsening climate change, 2023 saw a record number of weather and climate disasters. In 2023, flooding events alone caused a total of almost $7 billion in damages in the U.S. 

The cost of property damage and destruction of infrastructure are often the most clear and immediate impacts, as homes, buildings, roads and more are damaged or destroyed. The economic impact also extends to business interruption, loss of jobs, reduced tourism and more which lead to further financial strain. 

The costs of repairing and rebuilding 

Hurricane Katrina in 2005 caused an estimated $125 billion in damage, with widespread destruction to property and infrastructure across New Orleans. The storm crippled businesses and left thousands without jobs, contributing to long-term economic stagnation in the region. Housing markets are heavily impacted by property damage. After Hurricane Katrina, housing prices in New Orleans dropped significantly as many properties were either destroyed or made uninhabitable. 

Not only did the storm Katrina impact infrastructure but also the essential businesses were halted. Katrina impacted up to 19% of the total US oil production as 24% of the country’s natural gas supply is housed in or around areas impacted by the storm. 20 offshore rigs underwent significant damage causing refineries to halt production. This was the first time in the country’s history that the national average gas price went over $3. 

Who pays for repairs? 

Contributions from the government  

Federal as well as local government are often the first to respond after a disaster, they will allocate money for emergency relief and reconstruction. Agencies like FEMA (Federal Emergency Management Agency) provide financial assistance to individuals, municipalities, and states to cover the cost of rebuilding infrastructure and homes. In 2027, the hurricane season brought 3 large disasters, the federal relief packages amounted to $130 billion. 

At the state and local levels, additional funds are provided, though these governments often struggle to meet the demands of large-scale recovery due to budget limitations. This has led to calls for increased federal support and better pre-disaster planning. 

Insurance Companies 

If you are a homeowner and you have property insurance you can file claims to cover damage to homes, cars, and other possessions. Unfortunately, not all areas of the US are equally insured, such as those areas prone to specific types of disasters e.g. hurricanes and wildfires. Insurance premiums have increased the prices due to the heightened risk.  

For example, after Hurricane Katrina, insurance premiums in coastal areas of the Gulf and Atlantic soared by as much as 20-30% in some regions. 

Some homeowners may not be able to afford sufficient coverage, leaving them vulnerable to significant financial losses after a disaster. Additionally, many policies don’t cover flooding unless a separate policy is purchased, as seen in the extensive uninsured losses from Hurricane Harvey, where only about 20% of homeowners in the Houston area had flood insurance. 

The impact on small businesses 

A 2017 FEMA report highlighted that 40% of small businesses never reopen after a disaster. In these cases, both individuals and businesses are forced to rely on personal savings, loans, or government assistance, which may not be sufficient to cover the full extent of the damage. 

Some of the hidden costs of weather disasters 

Employment: Natural disasters can have various effects on the economy of the local area which ripple through multiple sectors. With productivity down, businesses begin to struggle and even more so if their property has been damaged or destroyed. The money to restore the business may not be immediately available, causing the owners and all staff to be without employment for a prolonged amount of time.  

Housing market: When disasters hit, and if the area has been hit multiple times, it is likely to deter future residents. Currently, Florida is facing its second large hurricane within a month, this will likely persuade many to relocate and others to delay or cancel their move into the area. This will have a substantial impact on the housing market.  

Investments: For investors, an area prone to natural disasters will likely deter any development in the area. This can include property investment as well as developing the area with more businesses.  

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London-listed companies will have greater flexibility to pay top executives higher salaries under new guidance from the UK’s £9.1tn investor body, despite a series of shareholder protests against bumper pay packets.

The Investment Association, the trade body representing 250 large investors holding important stakes in UK-listed companies, said on Wednesday that it had “simplified” its remuneration guidelines so that companies could set pay policies to “suit their specific needs” while also “being responsive to shareholder expectations”.

The move comes after prominent business figures called for higher executive pay to encourage companies to stay listed on the London Stock Exchange following an exodus of groups moving to the US, where executive remuneration tends to be higher. 

Andrew Ninian, a director at the IA, said the revised guidelines “demonstrate that investors want to incentivise delivery of long-term performance”. 

The investment body said its members wanted “a competitive” listing environment “that attracts companies to list and operate in the UK” and noted that “during the past year, there has been significant debate” on executive remuneration and “its impact on UK-listed companies”.

Companies’ remuneration committees use the IA guidelines when deciding whether to increase executive pay. Companies can deviate from the guidelines but shareholders generally expect the reasons to be explained.

Julia Hoggett, chief executive of the London Stock Exchange, said last year that UK executives should be paid more if the country wanted to retain talent and prevent companies moving overseas. 

The IA had committed last year to reviewing its guidance after pressure to respond to concerns that it was too rigid and made it difficult for companies with an international presence to attract top executives, particularly from the US.

Keith Barr, the former boss of InterContinental Hotels Group, is among a handful of executives to have left the UK in favour of the US. He warned that the UK was “not a very attractive place” for listed companies.

But the move to reward executives with higher pay risks stoking a greater backlash from some shareholders, after significant investor revolts against pay increases this year. AstraZeneca’s investors approved a potential £1.8mn increase for boss Pascal Soriot in April but the company was hit by a significant revolt from shareholders.

London Stock Exchange Group and Smith & Nephew were among the other FTSE 100 companies that pushed through higher executive pay deals at their AGMs this year. 

The updated guidelines allow for companies to benchmark executive pay against international rivals, noting that if a significant proportion of revenues are generated in an overseas market, such as the US, the remuneration committee “is encouraged to set out the impact of attracting global talent on the positioning of remuneration”.  

Luke Hildyard, director of the High Pay Centre, a think-tank, said that executive pay practices at global peers were “relevant in some instances” but noted that “few UK companies are of a similar size or global footprint as the biggest US firms, so comparisons are mostly redundant”.

Remuneration consultants at Alvarez & Marsal said the change was “positive” and “may help the market to develop a more rational and less emotionally charged framework for discussing pay levels”.

The new guidance also makes it easier for companies to adopt “hybrid” pay structures, which include long-term incentives that reward loyalty but have until now been more common in the US than the UK. Companies will also be given more flexibility on the level of director bonuses that must be deferred. 

The IA said boards should exercise discretion to “avoid rewarding or penalising executives for factors beyond their control or influence”. Alvarez & Marsal said this more flexible approach was “a significant change in tone from the IA”. 

Selecting the right platform is a bit like building a house: if the foundations aren’t stable then you’re in serious trouble further down the line.

I’m increasingly seeing advisers considering switching platforms looking to financial stability as that key foundation stone from which to build.

Today’s advice platform market is characterised by oversupply and frequent regulatory change, leaving a key problem for advisers to overcome – long-term stability.

A financially robust platform reassures advisers their chosen provider will endure market consolidation, invest in continuous innovation and maintain high service levels, while being able to adequately adapt to the pace of regulatory change.

Financial stability is about more than survival; it’s about thriving in a competitive market

Consumer Duty further underscores the need to take a more long-term approach. Advisers must ensure their platform partners can consistently meet these regulatory expectations, safeguarding consistency in service quality and good client outcomes.

Financial stability is about more than survival; it’s about thriving in a competitive market.

A stable platform is not a static platform. Instead, it’s a reliable partner that adapts, supports advisers’ evolving needs and provides the infrastructure to keep pace with technological advancements.

Without assessing a platform’s financial stability and ability to invest in development, advisers risk partnering with a platform that could struggle to sustain service quality or keep up with industry innovations, potentially putting their client relationships and business growth at risk.

Contrary to some opinions, advisers are open to exploring new platforms, but they generally need a trigger to make such a significant switch

Contrary to some opinions, advisers are open to exploring new platforms, but they generally need a trigger to make such a significant switch.

Realistically, a firm will only shift large volumes of business when there’s a compelling reason — which are often realised by concerns about their current platform’s financial health and levels of investment.

Consistency of service, back-office connectivity, and digital automation and experience give advisers an edge in an industry where marginal gains can make a real difference.

If doubts arise about a platform’s financial security, advisers should question whether they will continue to see these cornerstones of platform efficiency maintained.

Switching usually requires significant push factors that prompt advisers to consider their options. These can include long call wait times, processing delays, transaction errors and lack of accountability, all problems that damage client relationships and erode trust.

Platform charges have increasingly become a secondary consideration

Platform charges have increasingly become a secondary consideration. Charges across the industry are highly competitive, and advisers now view them as relatively uniform. Instead of focusing solely on costs, advisers weigh charges against a broader range of factors, like digital experience, investment choice, service model and overall value for money.

Platform charges represent only a small portion of the total cost of advice, which includes adviser fees and investment management costs. So, with cost differences between platforms generally minimal and one eye on Consumer Duty, advisers are beginning to prioritise the long-term viability of a platform over short-term savings.

With a focus on value mandated by Consumer Duty, advisers are gravitating towards platforms that have greater resources at their disposal. These are more capable of investing in reliable service and support, which ultimately benefits clients and helps advisers to scale their businesses.

Why onboarding matters

A seamless onboarding experience is essential for affirming advisers’ confidence in their decision to switch platforms. This process is their first impression of the new platform and sets the tone for their platform experience.

A well-designed onboarding process should be efficient, transparent and supportive, according to the individual needs of advice firms. This process involves not just the technical aspects of transferring data and setting up accounts but also clear communication, training and ongoing support.

Delivering all this requires investment, not just at the start, but as part of a continuous review process.

Effective onboarding can transform what is seen as a daunting process into a smooth, positive experience

By minimising the friction involved in switching and providing comprehensive assistance during the transition, platforms can reduce perceived barriers to change.

This proactive approach instils a sense of trust and reliability, which fosters long-term loyalty, making advisers more likely to stay with the platform and recommend it to others. Effective onboarding can transform what is seen as a daunting process into a smooth, positive experience.

While multiple factors influence platform selection and switching, we are seeing the emergence of financial stability as a critical element.

In an era of market oversupply and rapid technological change, advisers are increasingly recognising and seeking out platforms that are operationally efficient and financially secure.

Understanding these dynamics allows platforms to better position themselves to meet the evolving needs of advice firms and their clients to deliver mutual future success.

Ranila Ravi-Burslem is intermediary distribution director at Scottish Widows

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There are signs of stirring from the slumbering form of Radiohead. According to bassist Colin Greenwood, the band convened for rehearsals over the summer, eight years after their last album, A Moon Shaped Pool. Their reactivation, if it continues, would be a big event. But I hope it won’t result in The Smile being wiped from the schedules of Thom Yorke and Jonny Greenwood.

The album is the second this year from the Radiohead duo’s spin-off band. It teams them with drummer Tom Skinner of London jazz group Sons of Kemet. Their busy output resembles a release of pent-up energy, somewhere between a satellite orbiting Radiohead and an escape craft heading for parts unknown. As though loosened up by Skinner’s supple skills, Yorke and Greenwood sound almost frolicsome amid the songs’ twisty dynamics and brooding lyrics.

Cutouts was made during the same recording sessions as Wall of Eyes, which came out in January. In July Greenwood was hospitalised with an unspecified infection, receiving treatment in intensive care. He has now recovered, although The Smile had to cancel a European tour — an unfortunate check to the momentum that they’ve built up since their 2022 debut, A Light for Attracting Attention.

The new album lacks a peak comparable with Wall of Eyes’ “Bending Hectic”, a dizzying art-rock wig-out, but its 10 tracks flow together very well. “Foreign Spies” is an electronic ballad with echoes of 1970s cosmic music and a melody adapted from Greenwood’s 2019 orchestral composition “Horror vacui”. Its dreamy tempo feeds into “Instant Psalm”, a hymnal psychedelic number with another tender vocal turn from Yorke.

“Zero Sum” picks up the pace with Greenwood’s wiry guitar riffs and Skinner’s richly layered percussion. Yorke’s lyrics evoke a familiar sense of dread, but his singing is responsive and versatile. In “Don’t Get Me Started”, his voice cries out amid echo effects as if in a void. For “Bodies Laughing”, he conjures a grotesque scenario involving mockery and physical disgust in a needling high croon. Like the rest of the album, the song gets under your skin.

★★★★☆

‘Cutouts’ is released by XL Recordings

HOUSEHOLDS should be aware of rules surrounding this common item which could land you a £300 fine or even a criminal record.

Local authorities can issue fines for illegal log burner use in England.

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This rule was introduced by the Department for Environment and Rural Affairs (DEFRA) to reduce air pollution and has been in place for over two decades.

But councils can issue fines under new rules brought in last year.

Last year, the government instructed local authorities to consider using powers in the 2021 Environment Act to issue on-the-spot civil penalties.

Local authorities can issue financial penalties of between £175-£300 for smoke emissions from chimneys in smoke control areas in England. 

You could also get a fine of up to £1,000 for using unauthorised fuel in an appliance that’s not on the exempt list.

In some cases, if the situation goes to court, then fines could be as high as £5,000 for repeat offenders, as well as an additional £2,500 for every day the breach continues.

If you are confused about what types of appliances you can use it is always worth ringing your local council and asking for help.

How to avoid being fined

It is not against the law to use one of these heating devices, but there are certain regulations in place for households.

For example, if you live in a smoke control area, wood burners can not emit more than three grams of smoke per hour.

A smoke control area is a place where people and businesses are not allowed to emit a large amount of smoke from a chimney.

This rule was introduced by DEFRA to reduce air pollution and has been in place for over two decades.

You can find out if you live in a smoke control area by using an online map created by the department, this can be found by searching https://uk-air.defra.gov.uk/data/sca/.

For example, people who live in Slough with the SL16 postcode are in a smoke control area meaning how much fumes their appliances can emit is limited.

Residents who live in these types of areas can use log burners, but the appliance must first be approved by DEFRA.

You can find a full list of appliances and fuel which are safe to use by visiting, https://smokecontrol.defra.gov.uk/fuels-php/.

For example, it is safe to use some kinds of smokeless logs such as Aimcor Excel briquettes.

Families who use logs for fire should look for the ‘Ready to Burn’ logo on fuel packaging.

This means the fuel has less than 20% moisture and complies with DEFRA’s regulations.

If you buy a new log burner then it must adhere to Ecodesign rules to reduce smoke and pollutant emissions.

It is always worth checking with your manufacturer if a wood burner adheres to new ecodesign rules.

The reminder comes as many Brits look for alternative ways to heat their home this winter.

Energy costs have risen by £149 for the average household this month after Ofgem’s new price cap came into force.

Cuts to the Winter Fuel Payment also mean that around 10million pensioners are set to miss out on up to £300 in fuel support.

THE Duke and Duchess of Cambridge often favour staycations with their family over foreign holidays – much like Kate Middleton enjoyed with her family as a child.

She and her siblings would spend every summer visiting a particularly quaint corner of the Lake District – next to Lake Coniston and the charming village of Coniston.

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In an interview with the Evening Standard, Kate’s brother James Middleton described his childhood summers in the Lake District.

He said: “The Lake District. It stems from my childhood, reading Beatrix Potter’s Peter Rabbit, and as I got older, Arthur Ransome’s Swallows and Amazons.

“As my family and I spent time on Coniston Water and Lake Windermere, it was almost like we were living the stories in real life.

“I’d have visions of having my own ‘Timmy’ — the dog in the Famous Five — and imagined that we could go on adventures together.

“Every school holiday we would stay anywhere from a weekend to a week there, in sun or snow or rain, and because there was no electricity in the family cottage it was a real adventure — hiking in the mountains and playing in the Lakes.”

The Princess’s brother claims to have first visited the Lake District when he was just six months old, and the family’s ties to the area go back generations, with their paternal great-great-grandfather living in Yorkshire.

Their connection was even immortalised in a family coat of arms, which was given to Kate Middleton shortly before her marriage to Prince William.

A set of chevrons symbolises mountain landscapes like the Lake District, reflecting Princess Kate’s love of the outdoors.

More recently, the Duke and Duchess of Cambridge have visited the National Park in a royal capacity, making appearances at the Air Cadet‘s Windermere adventure training centre and turning their hands to sheep shearing.

As England‘s largest lake, Lake Windermere is a popular holiday destination in its own right.

But holidaymakers looking to visit the Lake District might want to head to Coniston Water, a slightly lesser-known body of water in the area.

In a review on TripAdvisor one person described their trip to Coniston, writing: “Close to the overrated Lake Windermere, Coniston is close, as the crow flies, but following a long winding road journey. It is a bit prettier than Windermere.”

Located in the southern area of the Lake District, Coniston is a quaint village at the mouth of the Coppermines Valley.

Historically, the village was known for its copper and slate mining.

However, in recent years, Coniston Water, a nearby lake has garnered tourist attention.

Roughly five miles long and half a mile wide, Coniston Water is located just a mile away from the village.

On Coniston Water, visitors can hire boats from Coniston Boating Centre, with dark sky canoeing taking place at night.

Coniston village is popular with hikers and ramblers because of its proximity to the Old Man of Coniston, one of Cumbria‘s most popular fells.

In the village, there are a range of shops, pubs and places to eat, including the Crown Inn.

Coniston also has its own local brewery – Coniston Brewery.

other nearby attractions include Lowther Castle & Gardens and Tarn Hows, an accessible walking route in the Lake District.

Coniston is a five-and-a-half-hour drive from London, and it’s a two-hour drive from Manchester.

Meanwhile, this often-ridiculed UK seaside town has been compared to Miami.

And this Victorian beach town is set to become big again this summer.

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