Treasury Department investigates insurance coverage impact of climate change

Insurance coverage - Climate Change Investigation

Concern is rising over the harm increasingly extreme weather is having on property rates and availability. The US Treasury Department is addressing rising concern over the impact of climate change on the availability and affordability of property insurance in disaster-prone areas. The Treasury is now launching the first nationwide insurers’ financial exposure assessment to climate risk. A preliminary email was issued by the Federal Insurance Office to regulators in every state. The email requested the data they had available for insurance coverage, liabilities and losses across the last half decade…

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Insurance industry is suffering from the impact of climate change

Insurance Industry - Climate Change loss

According to a new Capgemini report, only about 8 percent of insurers are adequately preparing. Climate change has been causing harm to the insurance industry, but only about 8 percent of insurers are adequately preparing for the impact of its risks, according to a report published by Capgemini consultants and the Efma industry body. Losses from natural disasters have exploded by 250 percent over the last three decades. The report stated that over the last thirty years, insured natural catastrophe losses have risen by a tremendous 250 percent. Severe storms…

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California Assemblymember Levine’s wildfire budget aims to reduce insurance premiums

Insurance premiums - Reduce costs - wildfires

Levine has called for $10 billion to boost defensible space and reduce the cost of coverage. California Assemblymember Marc Levine (D-Marin County) has announced a $10 billion budget request as Governor Newsome readies for the May budget revision. The revision is expected to show surplus funds that could potentially be greater than $68 billion. Levine wants half of the $10 billion wildfire risk budget to be aimed at home hardening strategy implementation in areas of high wildfire risk. He is also seeking to ensure that insurance premiums can be reduced,…

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Lloyd’s CEO calls climate change the insurance industry’s ‘biggest single opportunity’

Insurance industry - changing climate and weather

From global warming to flooding and extreme storms, the events are already getting started. John Neal, CEO of the world’s oldest insurance industry marketplace, Lloyd’s of London, has called climate change the “ultimate systemic risk” but also a huge opportunity for insurers. In a recent media interview, the Lloyd’s CEO compared climate change with the impact of the pandemic. At the same time that Neal called climate change a risk in the CNBC interview, he also referred to it as the “biggest single opportunity the insurance industry has ever seen.”…

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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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How Insurance Can Encourage Farmers to Mitigate Climate Change Risks

The sweeping impacts of climate change impact farmers at significant rates. As a result, insurance companies take a hit as well. For example, when nearly 20 million acres of farmland flooded in the American West, it initiated $4 billion in payouts from a federal crop insurance program. Because of disasters like this, farmers are coming around on the importance of mitigating the impacts of climate change to protect their own livelihoods. Insurance companies can help farmers make beneficial sustainability choices by helping those in the agriculture industry understand their impact…

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How Climate Change Affects the Housing Market

One look at the housing market these days will tell you almost all you need to know about it. Prices are on the rise, interest rates are low, and although hundreds of thousands of people are looking for homes to buy, it’s a seller’s market and pickings are slim. There are plenty of factors that can contribute to this trend from natural economic swings to the COVID-19 pandemic rush to get out of the cities.  Something that many people don’t necessarily consider as a factor that impacts the housing market…

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