Home insurance companies remove natural disaster coverage from policies as risk rises

Home insurance - Natural Disaster damage of homes

As the impact of climate change becomes increasingly costly to insurers, they are reducing protection. Some of the United States’ largest home insurance companies are announcing that the increasingly frequent and severe weather caused by climate change is leading them to raise premiums and remove certain coverages relating to natural disaster protection. Major insurers are increasingly finding themselves facing an unmanageable risk from natural disasters. That said, this type of decision is leading home insurance customers in some of the most vulnerable areas without the coverage they require the most.…

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Insurance coverage increasingly scarce and costly for fossil fuel companies

Insurance Coverage - Oil sands

Oil sands and coal companies are facing rising challenges getting affordable coverage worldwide. Insurance coverage is critical for any large business to operate, but firms centered around oil sands and coal are finding it increasingly challenging to get the policies they require, particularly at an affordable price. A growing number of insurers have stopped underwriting companies in high-polluting fossil fuels. As a result, insurance coverage is harder to find for companies producing, transporting or storing certain fossil fuels that are among the highest greenhouse gas emitters, such as those involved…

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Insurance industry taking a close look at limiting climate change exposure

Insurance industry - Fossil Fuels - Coal Plant

As a part of its efforts, it is taking certain moves away from fossil fuels, particularly in coal. The insurance industry is taking the threats from climate change increasingly seriously and as a part of its efforts to limit exposure, it is moving away from fossil fuels that pose the highest risk. Twenty-three companies have adopted coverage limiting or cessation policies for the coal sector. “This was not an issue that was central in the insurance sector, even 7 years ago,” explained Insurance Bureau of Canada national director of climate…

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UN Secretary General Guterres warns of insurance industry “race against time”

Insurance industry - climate change - time

A plea for action was made during the virtual Insurance Development forum closing remarks. In UN Secretary-General António Guterres’ closing remarks at the Insurance Development Forum held virtually earlier this week, he asserted that the insurance industry is in a “race against time” to make the adaptations necessary for adapting to the speed of climate change. As the climate continues to change rapidly, the risks are altering their shape, size, and frequency. According to Guterres, carbon neutrality worldwide must be achieved within the next thirty years, global finance needs to…

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Insurance industry isn’t ready for what climate change has in store

insurance industry climate change

The damaging severe weather is becoming more frequent and more expensive in the U.S. Last year in the United States, there were 11 extreme weather events that struck various parts of the country each leaving a minimum of $1 billion worth of damages behind, as well as thousands upon thousands of claims to the insurance industry. Superstorm Sandy, alone, left behind economic losses of $50 billion, not to mention the loss of human life. That storm also brought with it a cost tens of billions to the insurance industry, particularly…

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