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Insurance

INSURANCE

Insurance companies are in the business of predicting future loss, and so must ensure that they reserve for such events. What happens when the history they have is no longer a reliable guide for predicting the future? And then, what happens when those insurance companies begin to use forward-looking extreme weather models to price policies.

This is critical because the future, and even the present, no longer looks like the past. Large hurricanes that used to be infrequent are getting more common. The hottest days are often beyond what anyone has ever experienced. Evidence that in June, we recorded the highest single-day temperature the world has ever experienced and, in July, the hottest week.

America has only recently begun factoring in those accelerated risks as more frequent floods, droughts, wildfires and hurricanes, as well as precipitation and sea level rise, become the inevitable consequences of a warming planet.

As a result insurance companies nationwide are leaving homeowners in the lurch. We are observing this in Florida, North Carolina, Louisiana, Colorado, Oregon and California which have all seen insurers fold, cancel policies, cease writing new policies or leave the state  altogether after repeated floods, hurricanes and wildfires. AIG is even focusing on affluent ZIP codes to reduce sales in New York, Delaware, Montana, Idaho, Wyoming and Colorado.

In May 2023, two federal science agencies, the National Oceanic and Atmospheric Administration (NOAA) and the National Science Foundation (NSF) responded, announcing that they were creating a research center to bring climate change data to the insurance industry so they can use climate science to look into the future.

On September 20, 2023 First Street Foundation, a nonprofit that works to define and communicate risks posed by climate change, published its most recent report and devastating is an understatement. Tens of millions of properties around the country are insured at prices that haven’t caught up with the danger of hurricanes, wildfires, and floods. First Street estimates that 39 million US homes are insured at artificially suppressed prices compared to the risk they actually face.

THE ECONOMIC CONSEQUENCES OF CLIMATE, SO FAR…

  • NOAA reports, on its website, that the U.S. has sustained 360 weather and climate disasters since 1980 in which damages/costs reached or exceeded $1 billion for a total of $2.575 trillion.

    The 2019 share was $53.1 billion; 2020 was $115.4 billion; 2021 was $157 billion; 2022 was $175.2 billion.

    Through June 2023, with twelve events, the U.S. already reached $32.4 billion in damages (and 100 deaths) which is more than any total year prior to 1992. These events were all caused by tornadoes, severe hail, high winds, extreme flooding, record snowfall and copious rainfall.

  • The impact of these extreme weather events on everything from housing to food production is as far-reaching as it is frightening.  Already in 2019, Rostin Behnam of the Commodity Futures Trading Commission told the NYT, “It is abundantly clear that climate change poses financial risk to the stability of the financial system.” 

  • David Keys was driven to title his Opinion piece for The New York Times in May, 2023: Your Homeowners’ Insurance Bill is the Canary in the Climate Coal Mine.

HOW ARE INSURERS RESPONDING TO EXTREME WEATHER EVENTS?

They are raising their rates. They are reducing the number of homes they’ll insure. They are lobbying states for more freedom to increase rates. The ramifications are huge. Across the U.S., premiums jumped 12% from 2021 to 2022.  By 2023, more and more insurers are pulling back from vulnerable areas. Without insurance, banks won’t issue mortgages, making homes harder to buy or sell. While insurers can choose to stop offering insurance, the homeowners and governments they leave behind will still have to deal with the risks. And as the costs go up, more households may decide to reduce their coverage or may choose to go without insurance entirely.

As some private insurers retreat from higher-risk areas, state-backed “insurer of last resort” plans are stepping into the void. The number of enrollees in these state-backed plans rose by 29 percent between 2018 and 2021. These plans are often more expensive, they offer less coverage than private insurance options, and they face the same concerns as private insurers about their ability to pay out in the event of a crisis without burdening policyholders statewide.

WILDFIRES ARE DECIMATING THE INSURANCE MARKET IN THE WEST

FLOODING AND HURRICANES HAVE CLAIMED THE REST OF THE COUNTRY

It is not just wildfires that insurers are worried about. Scientists are confident that climate change is fueling hurricanes capable of whipping up more dangerous storm surges, as well as increasing the odds of extreme rainfall events (20% of the country can now expect a 1-in-100-year storm every 25 years) that can and are triggering inland flooding. In fact, unless you live in the 1% of U.S. counties that were not impacted by flooding between 1996 and 2019, your property may be at risk for flood damage. 

  • In 2021, CNN reported that flooding is the most common and costly natural disaster in the U.S., that in the previous decade, floods caused more than $155 billion worth of damage, according to the Federal Emergency Management Agency (FEMA) and that there are nearly 4.3 million residential properties around the country with a substantial risk of financial loss due to flooding. It’s estimated that only one-third of households in flood zones have flood insurance — with many risking financial ruin if the “big one” hits.

  • Imagine the costs if a category 5 hurricane hits New York. Already, Superstorm Sandy, in 2012, dealt a devastating blow to New York City, parts of New Jersey, and much of Long Island. Owing only to Sandy’s last-minute turn away from the South Fork, the storied Hamptons, where multi-million-dollar properties were too often developed practically to the ocean’s edge, escaped the worst of it. Nonetheless, it was immediately clear that higher, and perhaps much higher, insurance premiums would follow. 

  • In Florida, no stranger to flooding and hurricanes, Hurricane Ian killed more than 100 people in 2022 and caused an estimated $67 billion in private market insured losses, according to RMS. Losses, rate price controls and litigation costs have all prompted big insurers to pull back. As the state lost insurers (Farmers was the 4th major insurer to step back on July 3, 2023), more than 1 million Floridians have joined the state-backed Citizens plan, which is backed up by taxpayers and homeowners. The Florida exodus is the latest sign that climate change, exacerbated by the use of fossil fuels, is destabilizing the U.S. insurance market. Already, homeowners in the state pay about three times as much for insurance coverage as the national average, and rates this year are expected to soar about 40%.  Meanwhile, warmer air and water are making hurricanes stronger and more damaging.

  • July, 2023 had 55 million people in the Northeast under flood threats and 14 million under a tornado watch as Vermont, New York, and Pennsylvania experienced catastrophic rainfall.

SURELY, THERE IS FEDERAL FLOOD INSURANCE

Flood damage (storm surges, hurricanes, torrential rains) is generally excluded under standard homeowners and renters insurance policies but available as a separate policy from the National Flood Insurance Program (NFIP), administered by FEMA, and some private insurers (but limited to $250,000). FEMA is responsible for flagging high-risk zones where property owners with federally backed mortgages must purchase flood insurance but they rarely account for risks from intense rainfall. The National Flood Insurance Program, billions in debt due to years of disproportionate rates and repeated disasters, only recently enacted the so-called Risk Rating 2.0 restructuring.

In June, 2023, Forbes created a very useful guide to flood insurance here and another explaining how FEMA’s National Flood Insurance Program works here.

IS THE CLIMATE ALSO AFFECTING CROP INSURANCE?

Crop insurance is heavily subsidized by the Federal Crop Insurance Program (created in 1938 following the Great Depression) paying farmers when their crop yields or revenues decline and expensing billions of taxpayer dollars each year (taxpayers pick up about 60% of premiums). It is a huge safety net. Payments have risen rapidly from just over 41.5 billion in 1995 to $8.5 billion in 2020, as the climate crisis fueled extreme weather events across the country. Higher prices, and consequently higher premiums (and subsidies), will inevitably follow. Though much depends on the future escalations of greenhouse gas emissions and the resulting severity of future warming, climate change is expected to decrease domestic production of corn, soybeans, and wheat and have an outsize impact in the future.

In January, 2022, the headline at Reuters was ‘U.S. crop insurance payouts rise sharply as climate change worsens droughts, floods”.

ANY GOOD NEWS?

If there is a bright spot in the insurance sector, it is to be found in the industry’s growing recognition that climate change poses a significant threat to its long-established business model. Some companies’ practices are evolving as they simultaneously encourage policyholders to adapt and mitigate, and claimants to rebuild according to green standards.

Insurers have also begun looking at the dangers posed by companies without sufficient environmental concerns. Chubb will, for example, in 2022 cease underwriting new risks for companies that generate more than 30% of their energy production from coal. The two largest reinsurance companies in the world, Munich Re and Swiss Re, are both no longer insuring new oil and gas projects as of Spring, 2023. 

The next step for environmentalists will be to push more companies to shed their coverage of existing coal projects as well as all oil and gas.

Can you insure against climate change?

CURRENT NEWS

Pacific States Warn Insurers of Wildfire-Size Losses on Oil Risk

By Eliyahu Kamisher and Maxwell Adler 02/07/24
US insurers face potential portfolio losses comparable in size to claims from catastrophic wildfires if they delay selling off investments tied to fossil fuels, according to a study by West Coast insurance regulators.
Read more

Another home insurer withdraws — thousands of Californians will need to seek new coverage

By Clare Fonstein 12/22/23
An insurance company that covers more than 2,000 policyholders in the state is discontinuing its homeowners business, adding another name to the list of insurers that have left California.
Read more

‘A Beautiful Place That Has a Dragon’: Where Hurricane Risk Meets Booming Growth

By Aatish Bhatia 11/19/23
The hurricanes keep coming, and the people, too: The fastest-growing places along the Atlantic coast this century are also among the most hurricane-prone. Between 2016 and 2022, the five hurricanes that hit the Carolinas cost…
Read more

As Climate Shocks Grow, Lawmakers Investigate Insurers Fleeing Risky Areas

By Christopher Flavelle 11/01/23
Faced with growing losses from hurricanes, floods and wildfires, major insurance companies are pulling out of California, Florida and Louisiana — a shift that threatens to undermine the economies of those states.
Read more

Climate change is driving insurance rates up, forcing developers to add weather-proofing

By Rebecca Picciotto 10/31/23
Along East Boston’s waterfront sits The Eddy, a two-building property with over 250 luxury apartments. Its harbor-side location provides unobstructed views of the Boston skyline. It also leaves the building particularly vulnerable to sea surges…
Read more

Dramatic plan to expand flood areas could force millions to buy insurance

By Thomas Frank 10/27/23
It’s a glaring weak spot in climate protection: Millions of U.S. residents don’t have flood insurance and face financial ruin if their home is inundated. But the nation’s insurance gap would shrink under a dramatic…
Read more

Feeling the pinch of high home insurance rates? It’s not getting better anytime soon

By Greg Allen 10/26/23
Gregg Weiss lives in an older neighborhood in West Palm Beach. His home and many others are nearly a century old. It's a great place to live he says, except when it comes to buying…
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Global insured disaster losses in 2023 to top $100B

By Andrew Freedman 10/19/23
Global insured natural catastrophe losses in 2023 are expected to eclipse $100 billion for the sixth time since 2017, according to a new report from Gallagher Re, a reinsurance company.
Read more

The hypocrisy at the heart of the insurance industry

By Zoe Schlanger 10/18/23
Cameron Parish, Louisiana, used to be a nice collection of little coastal towns where the shrimping was good and the stars at night were better, James Hiatt told me. Hiatt lives just up the river,…
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The insurance world is flirting with its climate doom loop

By Helen Thomas 10/11/23
Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email licensing@ft.com to…
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As climate risks mount, the insurance safety net is collapsing

By Lois Parshley 10/10/23
“We’ve got ourselves a little monster out there,” anchorman Jim Cantore warned, facing the camera in the Weather Channel’s newsroom on a sultry August weekend in 1992. At first, few in Florida were paying attention.…
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Climate change is causing more damaging ‘mid-size’ storms. Insurers are taking notice

By Susan Phillips 10/05/23
On a Monday in early August, thunderstorms tore across the Philadelphia region. Nothing unusual, a typical summer storm.
Read more

KEY RESOURCES

National Flood Insurance Program Borrowing Authority

10/11/23
This Insight evaluates the National Flood Insurance Program (NFIP) borrowing authority to receive loans

The 9th National Risk Assessment: The Insurance Issue

09/20/23
Wildfire risk across the United States has been increasing in recent years, as described by a number of studies of the observed increased wildfire incidence, and relatedly, the increasing threat to forests and communities (Burke…

Federal Crop Insurance Program (FCIP) participation

05/03/23
Since its inception in the 1930s, the Federal Crop Insurance Program evolved into a key Federal support program for agriculture in the United States. The USDA, Risk Management Agency (RMA) oversees FCIP and offers agricultural…

NFIP Debt

11/04/22
Since Hurricane Katrina devastated the Gulf Coast in 2005, the National Flood Insurance Program’s (NFIP) debt to the U.S. Treasury has remained steep; it currently is $20.5 billion. In 2022 alone, the program will pay…

The Cost of Climate: America’s Growing Flood Risk

02/22/21
New research from First Street Foundation analyzes the economic impact of underestimated flood risk to properties throughout the United States. Current understandings of expected flood risk and its potential damage continue to underestimate the full…

Insure Our Future, Not Fossil Fuels

12/23/19
Insure Our Future holds the insurance industry accountable for its role supporting the drivers of climate change. The campaign is calling on insurers to stop insuring and investing in coal and tar sands projects and…

Seeking Higher Ground: How to Break the Cycle of Repeated Flooding with Climate-Smart Flood Insurance Reforms

07/25/17
The National Flood Insurance Program (NFIP) was designed to help Americans recover from flood disasters, but it can also unintentionally trap homeowners who would prefer to move somewhere safer. Instead of moving, many policyholders find…

MORE NEWS

Amid heat waves and drought, crop insurance costs skyrocket

By James Osborne   06/28/23  
In Gaines County, a hot and dry stretch of West Texas with a population of fewer than 22,000 people, cotton farmers don’t just rely on federal crop insurance to save them in bad years --…
Read more

Remarks By Assistant Secretary For Financial Institutions Graham Steele At Event Hosted By The Brookings Institution’s Assessing Insurance Regulation And Supervision Of Climate-related Financial Risk

06/28/23  
As the Assistant Secretary for Financial Institutions, my portfolio includes developing the Department’s policy views on banks, credit unions, consumer protection, access to capital, and financial sector cybersecurity matters. My remarks will focus on the…
Read more

Climate change is fueling an insurance crisis. There’s no easy fix

By Maxine Joselow   06/27/23  
Good morning and welcome to The Climate 202! ICYMI, The Washington Post is dropping its paywall through Thursday. You can read as many free articles as you want, as long as you provide your email…
Read more

Climate change is fueling an insurance crisis. There’s no easy fix.

By Maxine Joselow   06/27/23  
Good morning and welcome to The Climate 202! ICYMI, The Washington Post is dropping its paywall through Thursday. You can read as many free articles as you want, as long as you provide your email…
Read more

Billions in federal infrastructure spending could be wasted due to outdated government rainfall models

By Diana Olick   06/26/23  
Billions of dollars in federal funding from the Biden administration’s Infrastructure Investment and Jobs Act could be wasted because state highway and bridge projects are using an outdated government precipitation model to determine future flood…
Read more

Study shows federal weather model underplays flooding, putting infrastructure spending at risk

By Zack Colman   06/26/23  
The federal government is relying on an outdated weather model that is putting hundreds of billions of dollars in infrastructure spending at risk, according to a study by climate research firm First Street Foundation.
Read more

The places in the U.S. most at risk for extreme rainfall

By Kevin Crowe, John Muyskens and Brady Dennis   06/26/23  
Kim Schultz still struggles to describe how hard and fast the rain fell in her corner of southern Indiana that afternoon last September. “I’ve never seen anything like it. Never,” she recalled. Relentless rainfall inundated…
Read more

Intensifying Rains Pose Hidden Flood Risks Across the U.S.

By Raymond Zhong   06/26/23  
As climate change intensifies severe rainstorms, the infrastructure protecting millions of Americans from flooding faces growing risk of failures, according to new calculations of expected precipitation in every county and locality across the contiguous United…
Read more

It’s not just home insurance. Californians are struggling to insure their cars, too

By Claire Hao   06/20/23  
It’s not just home insurance. Auto insurance is also increasingly hard to get in California, according to insurance agents who say they are struggling to find quotes for clients who would have easily gotten insurance…
Read more

The coming business insurance apocalypse

By Joel Makower   06/19/23  
Last week, my wife and I were notified that Kemper, with which we’ve had a homeowner’s insurance policy for well over a decade, will soon stop insuring our home due to increased wildfire risk in…
Read more

It’s getting harder and more expensive to insure your California home. What can you do?

By John Woolfolk   06/19/23  
Californians are finding it harder and more expensive to insure their homes in the wake of devastating wildfires across the state in recent years. Premiums are rising sharply, even with requirements from 1988’s Proposition 103…
Read more

Two more property insurance companies scaling back coverage in Florida

By Rich Jones   06/15/23  
Florida homeowners have fewer options for property insurance. Just two weeks into hurricane season, The Farmers Group and AIG say they’re scaling back policy coverage. Both companies point to their vulnerability to natural disasters like…
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State Farm’s California freeze: Looming insurance apocalypse or political ploy?

By Sam Dean   06/15/23  
When State Farm announced in May that the company would stop writing new homeowners insurance policies in California, it issued a two-paragraph statement by way of explanation. It listed “historic increases in construction costs,” “rapidly…
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Nationwide Property & Casualty business actions update

06/12/23  
Strong headwinds brought on by the economic environment, catastrophic weather events and the impacts of inflation continue to impact the entire insurance industry. As a result, Nationwide has announced specific business actions it is taking…
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Lawmakers launch probe of insurance firms’ funding of fossil fuel industry

By Brianna Sacks   06/09/23  
As insurance companies scale back coverage in disaster-prone states because climate risks have become too costly, U.S. lawmakers have launched an investigation into seven major carriers for continuing to insure and invest billions of dollars…
Read more

More than 1 million Florida homeowners face double-digit insurance hikes

By Keely McCormick and Stassy Olmos   06/08/23  
The Florida Office of Insurance Regulation will consider approving a double-digit rate increase for Citizens Property Insurance on Thursday afternoon. It would be the second increase this year, as the state-backed insurer of last resort…
Read more

Citizens Property Insurance makes case to state for double-digit rate hike

By Forrest Saunders   06/08/23  
Florida insurance regulators Thursday afternoon considered a rate hike for homeowners using the state-backed insurer of last resort. Citizens Property Insurance was asking for a sizable increase as Florida's still unsteady property insurance market continues…
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Republicans’ anti-ESG attack may be silencing insurers, but it isn’t changing their pro-climate business decisions

By Rachel Kyte   06/08/23  
Over recent months there has been an orchestrated pushback against investors and insurers who integrate the risks of climate change into their business models. That pushback – emanating from Republican-led states – is having an…
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Climate disasters make it harder to insure your home. Here’s what to know.

By Brianna Sacks   06/07/23  
Homeowners are bracing for hurricane and fire seasons, but with insurance premiums rising and carriers pulling back coverage in riskier states, more and more residents don’t know whether they can afford to insure their home…
Read more

Florida property insurance costs rising faster than any other state

By Nicolás Rivero   06/07/23  
Anyone in Florida who has opened a home insurance bill in the last few years knows premiums have been skyrocketing. New estimates from a data analysis company shows they’ve actually been rising faster than in…
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Uninsurable America: Climate change hits the insurance industry

By Andrew Freedman and Nathan Bomey   06/06/23  
Decisions by two major insurers to stop offering new homeowner's policies in California highlight the growing portion of America that's becoming close to uninsurable. Why it matters: The threat of climate change-related disasters is a…
Read more

Why are insurers fleeing California?

By Isaac Saul   06/05/23  
Today, we're covering insurers who are leaving California. Is it climate change, regulatory policy, or something else? Plus, a question about whether Americans actually want non-biased news.
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Climate Shocks Are Making Parts of America Uninsurable. It Just Got Worse.

By Christopher Flavelle, Jill Cowan and Ivan Penn   06/02/23  
Insurance companies, tired of losing money, are raising rates, restricting coverage or pulling out of some areas altogether — making it more expensive for people to live in their homes. “Risk has a price,” said…
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It’s not just State Farm. Allstate no longer sells new home insurance policies in California

By Eliyahu Kamisher, Max Reyes and Biz Carson   06/02/23  
Californians looking to buy a house face some of the country’s most expensive real estate prices and wildfires that threaten scores of housing tracts. Now there’s another obstacle: finding an insurer willing to cover their…
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Millions of low-income Florida residents at risk of major insurance coverage gap

06/01/23  
Factors including stronger storms fueled by climate change, a strained insurance industry and ineffective state regulations have placed millions of low-income Florida residents at risk of a major insurance coverage gap. Manuel Bojorquez has more.
Read more

Climate change fuels an insurance crisis

By Olivier Knox   06/01/23  
You probably missed the second-biggest national political story of the past week, assuming you agree the debt limit deal is the first. It’s this: State Farm, arguably California’s largest provider of home insurance, won’t accept…
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10 states and scores of local governments sue FEMA over higher flood insurance rates

By Debbie Elliott   06/01/23  
Ten states and dozens of municipalities are suing the Biden administration over rate hikes in the National Flood Insurance Program. That program offers coverage in high-risk flood areas and is administered by FEMA, the Federal…
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The potential impact of climate change on travel insurance

05/31/23  
When it comes to “cancel for any reason” insurance policies, the small print will often disregard unseasonable weather or unforeseen activity cancellations which begs the question, as the environment alters, should travel insurance too? Veuer’s…
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Insurance industry turmoil over climate alliance exodus

Ian Smith and Kenza Bryan   05/30/23  
Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email licensing@ft.com to…
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Insurers flee climate alliance after ESG backlash in the U.S.

By Tommy Wilkes, Alexander Hübner and Tom Sims   05/26/23  
A United Nations-convened climate alliance for insurers suffered at least three more departures on Thursday including the group's chair, as insurance companies take fright in the face of opposition from U.S. Republican politicians.
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Will antitrust concerns be the death knell for insurers’ net-zero commitments?

By Polly Bindman   05/24/23  
Insurers with climate commitments have found themselves at the centre of a heavily politicised debate over whether coordinated climate action contravenes antitrust laws, leading three major insurers to exit the Net-Zero Insurance Alliance this week.
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Burning Hot: 50 Years of Fire Weather Across the United States

05/24/23  
Climate Central examined historical trends in fire weather—a combination of low humidity, high heat, and strong winds—across the U.S. This analysis uses data from 476 weather stations to assess trends in 245 climate divisions spanning…
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Insurance firms need more climate change information. Scientists say they can help

By Rebecca Hersher   05/23/23  
Climate-driven floods, hurricanes, wildfires and heat waves cause billions of dollars of damage every year in the United States. Federal scientists hope that better access to climate data will help one industry adapt: property insurers.
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Insurance firms need more climate change information. Scientists say they can help

By Rebecca Hersher   05/23/23  
Climate-driven floods, hurricanes, wildfires and heat waves cause billions of dollars of damage every year in the United States. Federal scientists hope that better access to climate data will help one industry adapt: property insurers.…
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Insight: Heat insurance offers climate change lifeline to poor workers

By Gloria Dickie, Simon Jessop and Shivam Patel   05/22/23  
A bright sun beat down on the sprawling Indian market where Kamlaben Ashokbhai Patni sat worrying about the brass jewellery on display in her wooden stall.
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Your Homeowners’ Insurance Bill Is the Canary in the Climate Coal Mine

By Benjamin Keys   05/07/23  
If you don’t think you’ve been affected by global warming, take a closer look at your last homeowners’ insurance bill: The average cost of coverage has reached $1,900 a year nationwide, but it’s $4,000 a…
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Home Insurance Premiums Rise as Americans Flock to Weather-Worn States

By Debra Kamin   05/05/23  
Home insurance premiums are on the rise, and a key driver for the price increase is climate change. Yet, Americans are moving fastest to Florida, Texas and other states most at risk for climate-related natural…
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Bringing climate risk home, one property at a time

By Saul Elbein   04/26/23  
By the time a homeowner who buys a house today pays off a typical mortgage, there is a good chance they will live in a different climate — one threatened by stronger winds, more frequent…
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Colorado legislature poised to create “last resort” property insurance plan as crisis looms

By Noelle Phillips   04/06/23  
Colorado wildfires are making it harder for homeowners and businesses to buy property insurance, and now the General Assembly is poised to create a public insurance plan to serve as a last resort for those…
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Mortgages, Home Values, and Climate Change: Insurify Poll Reveals Top Homeowner Concerns

By Chris Schafer   04/03/23  
The home market has gone through significant changes since the start of the COVID-19 pandemic. More flexibility due to the rise in work-from-home jobs, coupled with historically low interest rates, fostered a booming real estate…
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Stop insuring carbon projects ‘immediately’, activists tell bosses

By Tom Sims and Simon Jessop   03/28/23  
A group of climate activists has called on 30 insurance company bosses to "immediately" stop underwriting new fossil fuel projects in the wake of a stark climate warning from U.N. scientists, a letter seen by…
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Climate Change Is Destabilizing Insurance Industry

By Thomas Frank   03/23/23  
The president of one of the world’s largest insurance brokers warned Wednesday that climate change is destabilizing the insurance industry, driving up prices and pushing insurers out of high-risk markets. Aon PLC President Eric Andersen…
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Insurer Chubb demands energy producers cut methane emissions for coverage

By Leslie Scism and Rhiannon Hoyle   03/22/23  
Global insurer Chubb Ltd. is tightening its requirements on insurance policies for oil-and- gas producers, demanding that they reduce emissions of methane, a potent greenhouse gas.
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Climate change creates heightened workers comp exposures

By Jon Campisi   03/22/23  
Climate change has hit states’ workers compensation systems, as more severe weather patterns, wildfires and other incidents have resulted in lost worker hours and had detrimental effects on mental health, among other things, a panel…
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Insurers slashed Hurricane Ian payouts far below damage estimates, documents and insiders reveal

By Brianna Sacks   03/11/23  
Companies altered licensed adjusters’ reports of Hurricane Ian damage without their consent, resulting in lower payouts for homeowners, a Post investigation found....
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Florida commercial property in for big insurance hikes this year

By Lidia Dinkova   03/08/23  
Florida commercial property owners that have been dealing with escalating insurance costs for years are in for more bad news. This year, insurance rates in the state are expected to go up by 45 percent…
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Where U.S. house prices may be most overvalued as climate change worsens

By Brady Dennis   02/16/23  
The nation’s real estate market has yet to fully account for the increasing threats to millions of homes from rising seas, stronger storms and torrential downpours, according to new research published Thursday.
Read more

Record-High Crop Insurance Subsidies Are Unsustainable

01/27/23  
The federal crop insurance program is the most expensive program authorized in the farm bill, excluding nutrition spending, and is a primary driver of monoculture commodity production in the United States. Record-high taxpayer subsidies benefit…
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‘Living with risk’: Wildfires fuel insurance worries out West

By Avery Ellfeldt   12/23/22  
More residents of the western United States are finding it difficult to secure affordable homeowners insurance — a growing problem made worse by climate-juiced wildfires. Wildfire risk is bearing down on property insurance markets across…
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Fla. lawmakers force homeowners to buy flood insurance

By Thomas Frank   12/15/22  
Hundreds of thousands of Florida property owners face requirements to buy flood insurance under a precedent-setting bill approved Wednesday by the state Legislature. It’s the first mandate of its kind in the country.
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