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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

Florida Developers Are Holding Off on Big Projects as Insurance Costs Surge

By Deborah Acosta   11/29/22  
David Lynd, a San Antonio-based developer of large-scale apartment buildings, had been expanding his business in South Florida. But recently, he decided to put one of his new projects on hold.
Read more

With Climate Impacts Growing, Insurance Companies Face Big Challenges

By Renee Cho   11/03/22  
The impacts of climate change are all around us: sea level rise, severe heat waves, drought, extreme rainfall, more powerful storms. These impacts are making natural disasters more intense and more frequent. Between 1980 and…
Read more

Hurricane Ian could push insurers out of Florida

By Isabelle Gerretsen   10/21/22  
Analysts say the excessive costs from the storm could lead to insurers either avoiding Florida property altogether or charging sky-high premiums to homeowners. The category four hurricane, which was one of the most powerful to…
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Some risks too big: Insurers withdraw from fossil projects

By Frank Jordans   10/19/22  
Insurance companies that have long said they’ll cover anything, at the right price, are increasingly ruling out fossil fuel projects because of climate change — to cheers from environmental campaigners. More than a dozen groups…
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Treasury to insurers: Divulge your climate risks

By Thomas Frank   10/19/22  
The Biden administration launched an unprecedented effort Tuesday to analyze how climate change is affecting property insurance costs and availability. The move comes as homeowners face soaring premiums in several states and dwindling insurance options.…
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Californians Who Fortify Their Homes Against Wildfires Will Now Pay Less for Insurance

By Lauren Leffer   10/19/22  
California homeowners might soon see some reprieve in skyrocketing property insurance rates. That is, if they take steps to wildfire-proof their houses. The West Coast state is the first in the country to require insurance…
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Treasury Dept. to ask insurers for data on climate risks

By Ephrat Livni   10/18/22  
The department is proposing to gather information from across the country to establish where climate change is making property insurance unaffordable or inaccessible.
Read more

Ian may push Florida real estate out of reach for all but the super rich

By Christopher Flavelle   10/13/22  
The hurricane’s record-breaking cost will make it even harder for many to get insurance, experts say — threatening home sales, mortgages and construction.
Read more

Lack of flood disclosure laws is putting home buyers at risk

By René Marsh   10/01/22  
Since she moved in, Jones said the property has seen some level of flooding about 30 times, but the most severe was in March 2020.
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Risky Business: Underinsured Against Climate Disaster

09/30/22  
Home and property insurance is complicated and typically boring – until a disaster happens to you. In recent years, hundreds of thousands of people in high-risk disaster areas across the U.S. have been dropped from…
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Hurricane Ian’s Devastation Shows the Challenge of Pricing Climate Risk

By Ephrat Livni   09/29/22  
Hurricane Ian, now downgraded to a tropical storm, is expected to inflict as much as $40 billion in property damage claims and much higher total economic losses, RBC Capital Markets analysts calculated in an early…
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As climate change threatens more homes, some properties are getting too costly to insure

By Kate Dore   08/07/22  
As climate change threatens the U.S. with more natural disasters, it’s becoming increasingly costly for Americans to insure their homes ⁠— and it’s only expected to get worse, according to experts.
Read more

‘This is not a survivable market.’ Insurance crisis hits Fla.

By Thomas Frank   06/22/22  
FedNat’s pullback is the latest in a stunning series of insurance cancellations, nonrenewals and company liquidations that have left Florida residents struggling to find coverage at the start of a hurricane season that is projected…
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This Year’s Hurricane Season Threatens One Of The U.S.’s Biggest Economies

By Alejandro De La Garza   06/02/22  
As the June 1 start of hurricane season approached last week, Florida lawmakers raced to address a crucial gap in the state’s coastal defenses: property insurance. Insurance markets in the state are in crisis, with…
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Tomorrow is not the same as yesterday

11/09/21  
Dr. Lou Gritzo, vice president and manager of research at FM Global, joins StrategicRISK to talk about the changing climate and how businesses can make resilient choices. Lou, thanks for joining us to discuss climate…
Read more

Long Island flood insurance premiums will rise for most homeowners but some will see big price cuts

By Jonathan LaMantia   11/05/21  
Three in four Long Island homeowners insured under the National Flood Insurance Program will see their premiums rise next year, while a smaller contingent will see their annual bill cut by $1,200 or more.
Read more

What could finally stop new coal plants? Pulling the plug on their insurance.

By Steven Mufson   10/26/21  
The campaign to stop the proliferation of coal plants may come down to a bit of financial engineering: pulling the plug on insurance coverage. More than 30 insurance companies have announced restrictions on underwriting coal…
Read more

What the US climate-risk review means for FHA, VA loans and more

By Daniel Houston   10/19/21  
A federal effort to make private flood insurance available to FHA borrowers in flood zones is nearing final approval, according to the White House’s latest climate-risk report.
Read more

Should You Get Flood Insurance for Your Home?

By Ronda Kaysen   10/08/21  
In the weeks since Hurricane Ida flooded her Maplewood, N.J., basement with eight inches of water, Ingrid Nagy has been trying to figure out how to financially protect herself from the next big storm.
Read more

Investigation: Majority of Directors of World’s Top Insurance Companies Tied to Polluting Industries

By Rachel Sherrington   10/07/21  
Just over half of all directors at 30 of the world’s largest insurance companies have affiliations to polluting companies and organisations, reveals an investigation by DeSmog, including several individuals holding senior roles at some of…
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The price of living near the shore is already high. It’s about to go through the roof.

By Darryl Fears and Lori Rozsa   10/01/21  
As FEMA prepares to remove subsidies from its flood insurance, a new assessment says 8 million homeowners in landlocked states are at risk of serious flooding because of climate change
Read more

Climate Change Replaces Pandemic as Insurers’ Biggest Worry

By Alexandre Rajbhandari   09/28/21  
Climate change has returned to the top of the list of insurers’ biggest concerns as the vaccine roll-out and gradual lifting of health restrictions see pandemic fears ease in many countries.
Read more

Coal, oil sands companies feel growing insurance squeeze

By Corbin Hiar   09/20/21  
Insurance, a basic necessity for any business, is becoming increasingly expensive for some coal and oil sands companies.That’s because a growing number of insurers are refusing to underwrite companies involved with producing or transporting the…
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With Extreme Weather, Home Insurance Will Cost More. If You Can Get It.

By Paul Sullivan   09/10/21  
Wildfires in California and Oregon. Hurricanes that wreak havoc from the Gulf Coast up to the Northeast. Hail in the Midwest that is so big and falls with such intensity that it punctures roofs.
Read more

Climate Change Risks And Insurance Policies

09/05/21  
NPR's Michel Martin speaks with economist Howard Kunreuther, co-director of the Wharton Risk Management and Decision Process Center, about climate change's impact on the insurance industry.
Read more

IPCC Findings Illustrate Need for Banks and Insurers to Divest From Fossil Fuels

By Hannah Saggau   09/01/21  
Recently, the Intergovernmental Panel on Climate Change (IPCC) released its latest report, identifying a rapidly closing window to avoid the direst impacts of the climate emergency. The report set off renewed calls to stop the…
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Climate risks for insurers: Why the industry needs to act now to address climate risk on both sides of the balance sheet

By Hailey Ross   08/27/21  
Financial regulators worldwide are grappling with the impact of climate change and the increasing risk it presents for financial systems, while climate scientists call for rapid reductions in greenhouse gas emissions to prevent a climate…
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FEMA overhauls the National Flood Insurance Program for climate change

By Diana Olick   08/18/21  
Climate change and its devastating impact are accelerating faster than ever, according to a new report from the United Nations’ Intergovernmental Panel on Climate Change. Hurricanes are becoming stronger, rainfall heavier and flood risk higher.…
Read more

FEMA Will Take Climate Change Into Account In Flood Insurance Overhaul

By Natasha Lasky   08/17/21  
Currently, the Federal Emergency Management Agency (FEMA) provides $1.3 trillion in coverage for more than 5 million policyholders in 23,500 communities nationwide through the National Flood Insurance Program. But on October 1, the program will be overhauled to…
Read more

FEMA Knows a Lot About Climate-Driven Flooding

By James Bruggers   08/04/21  
The Federal Emergency Management Agency (FEMA) has been collecting a lot of information about flood risks across America, including the increased risk of flooding linked to climate change. But the agency has not effectively used…
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Global warming increased U.S. crop insurance losses by $27 billion in 27 years

By Josie Garthwaite   08/04/21  
A new Stanford University study shows hot, dry conditions caused by climate change have added billions of dollars to the cost of the federally subsidized insurance program that protects farmers against drops in crop prices…
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Smaller but More Frequent Catastrophes Loom Over Insurance Sector

By Julie Steinberg   07/22/21  
Floods in Germany, ice storms in Texas and heat domes in the Pacific Northwest are focusing attention in the insurance industry on the cumulative damage wrought by clusters of second-tier catastrophes.
Read more

Fannie and Freddie Mortgages Vastly Underestimate Flooding Risks

07/15/21  
Climate-induced flooding has inundated coastal cities, yet new reporting from Politico shows that government mortgage lenders like Fannie Mae and Freddie Mac continue to pump money into severely flood-prone property markets. 
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FEMA Is Changing Its Flood Insurance Program. Here’s How It Will Impact Texans

By Katie Watkins   06/24/21  
Roughly 86% of Texans with federal flood insurance could see their premiums go up next year when a new program goes into effect, according to data from the Federal Emergency Management Agency. FEMA's National Flood…
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With Start of Hurricane Season, It’s Time to Consider Flood Insurance

By Ann Carrns   06/11/21  
This year’s hurricane season began early, with a named storm forming before the official start on June 1, and it is expected to be active. If you lack flood insurance, especially if you live near…
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Poor Homeowners Will Pay Less after Flood Insurance Overhaul

By Thomas Frank   06/07/21  
An upcoming overhaul of the federal government’s flood insurance program will financially benefit many of the nation’s lowest-income communities by cutting premiums for a large share of their residents, an E&E News analysis of government…
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US Insurance Giants Worsening Climate Crisis, Biodiversity Loss, and Human Rights Violations: Report

By Kenny Stancil and staff writer   05/26/21  
The world's leading insurance companies, especially U.S. ones, are underwriting and investing in industries that drive planetary heating, destroy ecosystems, and violate human rights, according to Insuring Disaster, a new report released Wednesday by a United Kingdom-based financial…
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Point of View: Home insurance rates soaring with the heat

By Carlos Gimenez   05/25/21  
Homeowners are the ones who incur the hefty costs when extreme weather strikes, especially those who live in low-lying coastal areas. Now is the time for all levels of government, in conjunction with the innovations…
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RMS Global Catastrophe Model Leader Launches First Climate Change Models, Enabling New Risk Insights

By Newswire   05/06/21  
RMS, the world’s leading catastrophe risk modeling and solutions company, revealed that according to its new Climate Change Models, and based on today’s exposures, insured average annual losses (AAL) from North Atlantic Hurricane wind could…
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Climate Change Could Cut World Economy by $23 Trillion in 2050, Insurance Giant Warns

By Christopher Flavelle   04/23/21  
Poor nations would be particularly hard hit, but few would escape, Swiss Re said. The findings could influence how the industry prices insurance and invests its mammoth portfolios.
Read more

Climate crisis demands a new insurance industry

By Preston Nanney, CPCU   04/19/21  
As debate continues over declined COVID-19 business interruption claims and the virus exclusion, the role of the insurance industry amid global disasters has come into question. The ubiquity of pandemic risk requires enormous, sometimes unaffordable premium…
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Insurers Struggle to Forecast Near-Term Risks in a Shifting Climate

By Stephanie Pappas   04/16/21  
The 2020 wildfire and hurricane seasons broke records, with wildfires burning more than 10 million acres in the U.S. and 30 named storms roaring through the Atlantic Ocean.
Read more

Flood Risks Are Rising Amid Climate Change, But Congress Is Delaying Action

By Leanna First-Arai   03/31/21  
The Biden administration is adding a $2 trillion green jobs and infrastructure plan to the list of climate commitments announced in its first 100 days, but pinpointing who will foot the bill for damage caused by rising seas and…
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Why Is Chuck Schumer Protecting the Rich From Flood Insurance Hikes?

By Nick Martin   03/26/21  
As last week was winding to a close, The New York Times reported on an odd instance of power brokering by Senate Majority Leader Chuck Schumer. Ahead of a planned April 1 rollout, the New York senator stepped…
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FEMA pauses flood insurance rate update after Schumer pushback: report

By Rachel Frazin   03/18/21  
The Federal Emergency Management Agency (FEMA) has paused an impending update to flood insurance rates, aimed at making the country more prepared for risks of climate change, after objections from Senate Majority Leader Charles Schumer (D-N.Y.), The New…
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Chuck Schumer Stalls Climate Overhaul of Flood Insurance Program

By Christopher Flavelle and Emily Cochrane   03/18/21  
The Senate leader is objecting to a plan that would raise costs for some of his constituents by bringing flood insurance rates in line with climate risks. WASHINGTON — One of the federal government’s main…
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The Future of Climate Change Risk Regulation for Insurers in America?

By Thomas M. Dawson   03/12/21  
In the few short weeks since our last report on climate change and the US insurance industry, the volume of climate change news has been extraordinarily high. The range of developments has been broad to say the…
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Flood risk is growing for US homeowners due to climate change. Current insurance rates greatly underestimate the threat, a new report finds

By Drew Kann   02/22/21  
Wildfires and hurricane-force winds produce stunning videos and headlines, but flooding is the most common and costly natural disaster in the United States.
Read more

Insurance Industry Pulling Plug on Fossil Fuels

By Peter Sinclair   02/01/21  
Nothing happens in the Economy without insurance. Could the insurance industry be a driver of climate action? More on this in upcoming Yale Climate Connections vid, stay tuned.
Read more

Homeowners And Insurance Companies Will Grapple With Climate Change In 2021

By Ed Leefeldt and Amy Danise   01/13/21  
After a 2020 filled with hurricanes and wildfires, this year could be the moment when the U.S. insurance industry finally grapples with climate change. Who will win that wrestling match? Insurers? Homeowners? Or the increasingly…
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