Insurers Will Struggle to Dodge Climate-Change Tab
Insurers will struggle to dodge climate-change tab as governments won't tolerate permanent insurance dead zones and can't afford to pay up themselves. Governments won’t tolerate permanent insurance dead zones and can’t afford to pay up themselves, leading property and casualty firms to foot the bill one way or another. The costs of climate-related disasters are rising, with global economic losses from natural disasters hitting $368 billion in 2024.
- The insurance industry's efforts to minimize exposure by pulling coverage from areas most vulnerable to wildfires, floods, droughts, and hurricanes may ultimately be unsustainable in the face of mounting evidence of the devastating impacts of climate change.
- As governments struggle to balance the need for insurance companies to take on risk with the need for residents to have access to affordable coverage, it remains unclear how they will ensure that no one is left to bear the brunt of these costs alone.