Tag: climate change

Insurance spending will double in the next decade, says Lloyd’s of London

H. Cutner
Insurance Spending - Lloyd's of London Building

Chief exec John Neal has predicted that a greater risk perception like bank failures will drive the trend. Global insurance spending will probably reach the point that it has doubled in the coming decade, mainly driven by an increased risk perception, said Lloyd’s of London CEO John Neal. Climate change and bank failures have reminded the world of the size of potential risks. “Financial risk,” on the heels of bank failures in Europe and the United States, in addition to systemic risks, such as climate change and pandemics, are expected…

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State Farm announces its first Task Force on Climate-Related Financial Disclosures

Marc
State Farm - New report

The insurer issued a release discussing the ways in which it is addressing climate risks. State Farm has announced the creation of its first Task Force on Climate-Related Financial Disclosures (TCFD) report. The goal is to provide transparency regarding its climate risk strategies for policyholders and its own business. In the release, State Farm recognized that climate change is bringing about greater risk and uncertainty for policyholders, particularly in terms of the severity, frequency, and location of catastrophic weather events. As such, the insurer has acknowledged its primary role as…

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Nature Conservancy purchases an insurance policy to cover Hawaii’s coral reefs

Julie Campbell
Insurance policy - Coral Reef with fish

The nonprofit is the first organization to obtain coverage for the coral’s repair following coastal storms. Coastal storms in Hawaii have been damaging already threatened coral reefs and the Nature Conservancy nonprofit has now purchased an insurance policy to repair that damage. State officials cannot afford to implement the repairs that the coverage will pay the nonprofit to do. This first-of-its-kind insurance policy approach to climate change is an effort to obtain the necessary funding to help the coral reefs in Hawaii to keep up with the worsening storms. This…

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Low flood insurance coverage worrying as climate crisis advances

G. Turner
Flood insurance - Flooded Road Sign

As losses from flooding skyrocket from one year to the next, uninsured rates are setting up for disaster. Low levels of flood insurance are occurring at a time during which the risk and cost of damage are taking off due to more frequent and more severe events caused by climate change. From 2011 through 2020, insured flooding losses doubled to $80B worldwide compared to the decade before. That said, flood insurance penetration is still sitting at a worrying 18 percent, according to the recent economic insights report focused on flooding…

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California signs heat wave ranking and early warning system law

Nordstrom
Heat wave - City

Signing AB 2238 is labeling the state as a world leader in efforts for protection against climate change effects. California Governor Gavin Newsom has signed Assembly Bill 2238 into law, creating the first statewide heat wave ranking and early warning system to help state residents to prepare. AB 2238 was sponsored by Insurance Commissioner Ricardo Lara to help protect Californians. The bill was co-authored by Assemblymembers Luz Rivas, Eduardo Garcia, and Cristina Garcia. It will create the first statewide ranking and early warning system in the country for heat waves…

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