Impact of climate change to make insurance prohibitively expensive, says Munich Re

Impact of Climate Change - Damage House

The largest reinsurance company in the world has cautioned that most people won’t afford coverage soon. For several years, insurance companies have been warning that the impact of climate change will be an expensive one. Munich Re, the largest reinsurance company in the world, is now warning that global warming will make insurance too expensive for most people. The reinsurer has already blamed climate change for $24 billion in California wildfire losses. Munich Re chief climatologist, Ernst Rauch, explained in a recent Guardian report that it won’t be long before…

Read More

Insurance industry calculations required to change due to climate change impact

Insurance industry calculations - Global Warming

Insurers have become the front line of the unpredictability linked with the Earth’s rapid warming. Insurance industry calculations are being forced to change as a result of the impact of climate change on the risks facing multiple sectors. Due to the nature of the business, insurance companies are among the first to face these issues. Measurably increasing rates of natural disasters are raising the number of claims and the size of those insurance claims to property, business, and auto insurers. Storms such as hurricanes and tornadoes, as well as droughts…

Read More

Swiss Re insurance stops covering coal-dependent companies

Swiss Re insurance - Coal Station

The massive insurer is a part of a growing movement finding that fossil fuels are becoming a liability. The Swiss Re insurance giant has implemented a new policy against covering firms highly reliant on coal. As the world works to eliminate coal power, firms are finding that the move is as good for their bottom line as it is for the environment. The insurance industry is starting to see many fossil fuels as a type of reliance too risky to cover. The new Swiss Re insurance coverage policy will refuse…

Read More

California home insurance is harder to get with each new climate-related disaster

California home insurance - Home in California

Insurers take wildfires, high tide flooding and other issues into consideration before selling a policy. California home insurance is becoming increasingly challenging to find for many homeowners affected by climate-related disasters. Insurers are using climate science to estimate the risk associated with a property when it comes to a number of different perils. Insurers are no longer assuming that homes that were once in low-risk areas continue to be so. The last few years have shown that homes never affected by climate-related disasters are not immune to those events. High…

Read More

Climate change will be challenging for insurance companies, says Moody’s

Climate Change - Insurance - Earth in Flood and Fire

A new report revealed the impact of warming climates worldwide on the insurance industry. The impact of climate change on the economy will have an increased liability risk for insurance companies. Catastrophes related to extreme weather are becoming more severe and frequent, according to a Moody’s Investors Service report. The report pointed to the rising instance of weather disasters like Hurricane Harvey in 2017. Moody’s Investors Service recently released a report. It investigated the economic aftermath of climate change. Insurance companies will face an increased liability risk from more frequent…

Read More

Climate change and severe weather could increase insurance rates for everyone

climate change extreme weather drought storms

Even homeowners who don’t reside in areas struck by recent hurricanes could feel the pinch. Homeowners across America wouldn’t likely be surprised to hear that climate change and the severe weather coming with it could raise insurance rates in areas like Florida and Texas. That said, just because an area wasn’t struck by Harvey or Irma, it doesn’t mean rates won’t rise there, too. Motorists and homeowners throughout many U.S. states will likely watch premiums rise over the next while. Insurance companies are being increasingly affected by climate change. Severe…

Read More

Climate change challenges getting the best of most insurance companies

climate change challenges

A recent report showed that the majority of insurers are not keeping up with the trends when making investment decisions. When it comes to the climate change challenges faced by insurance companies, many are not being met. In fact, a recent study said 90 percent of insurers are failing in this important area. Insurance companies aren’t considering climate change when they decide on investments, said the report. This information was presented by the Asset Owners Disclosure Project in a report they published. The Asset Owners Disclosure Project conducted the research.…

Read More