Insurers becoming increasingly concerns over the effects of climate change
Climate change is a highly politicized issue that has generated a great deal of controversy over the years. Though the issue has caused division in numerous industries and within the political world itself, it has been better received by the global insurance industry. Climate change and its potential effects have caused a great deal of concern amongst insurers who have long kept tabs on changes in environments and weather patterns. Because climate change could spur profound financial losses, insurers are beginning efforts to raise awareness of the phenomenon.
Study suggests that wildfires will become more common in the coming years
A new study from the University of California and the Texas Tech University suggests that climate change could have a profound impact on wildfire patterns around the world. The study indicates that changing weather patterns will create conditions that are more accommodating to fires. These conditions would also make it more difficult for wildfires to be contained. The reason behind this is largely linked to the fact that large parts of the planet will have increased risk of fires. Controlling the spread of fires over large expanses of land has long proven to be a difficult feat.
Wildfires to become commonplace by end of century
The study draws upon a 16 different climate change models and satellite data to create a global perspective rather than the regional perspective that is common with other studies. According to researchers, most of North America and Europe will see a sharp increase in the frequency of wildfires in the next 30 years. This trend is expected to continue until the end of the century.
Insurance industry set to tangle with climate change
The global insurance industry has become keenly attuned to the changes in climate and how they might affect the world. Insurers have shown proficiency in predicting future trends and adapting accordingly in order to offer protections to consumers. The problem with climate change, however, is that the phenomenon could be larger than any previous event the insurance industry has had to mitigate, which could translate into higher insurance costs or the disappearance of coverage from designated “high risk” areas of the world.