<
https://thehill.com/policy/energy-environment/4068383-insurers-pull-back-as-us-climate-catastrophes-intensify/>
"The insurance industry is increasingly wary of the risks presented by climate
and natural disasters, prompting major firms to scale back their presence in
more vulnerable states.
In June, Farmers Insurance announced in a company memo it will no longer write
new property insurance policies in Florida, citing “catastrophe costs … at
historically high levels.” Earlier in the month, AIG stopped issuing policies
along the Sunshine State’s hurricane-vulnerable coastline.
Those followed State Farm, California’s largest homeowners’ insurer, which in
May announced a moratorium on new policies in the state, blaming “rapidly
growing catastrophe exposure.” The decision came after years of devastating
wildfires have sent insurance rates in California skyrocketing.
Eric Andersen, president of consulting firm Aon plc, said in testimony before
the Senate Budget Committee in March that reinsurance companies — the firms
that help insurers pay out costs — have also stepped back from high-risk areas,
particularly those vulnerable to flooding and wildfires.
“Just as the U.S. economy was overexposed to mortgage risk in 2008, the economy
today is overexposed to climate risk,” he said.
The industry is feeling the pinch beyond the East and West coasts, as well,
according to Mark Friedlander, director of corporate communications at the
Insurance Information Institute. He noted that dozens of firms have reduced
their presence in Louisiana, including 50 that have stopped writing new
policies in the state’s hurricane-prone parishes.
“This isn’t just a story about Florida and California — all over the country,
there are insurers who are less willing to take risks,” from those along major
rivers to areas vulnerable to tornadoes, said Benjamin Keys, an assistant
professor of real estate at the University of Pennsylvania’s Wharton School.
Louisiana, in particular, has gotten less attention than California and
Florida, but the state’s insurance industry has been steamrolled by recent
intense storm seasons."
Via Frederick Wilson II.
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
