Some homeowners are opting out of insurance altogether, further exacerbating overall disaster risks.
Shannon Osaka reports for The Washington Post.
In short:
- The U.S. incurs nearly 0.4% of its GDP in damages from weather disasters annually, a higher rate than many other countries.
- Last year, the U.S. experienced 28 billion-dollar weather events, highlighting the increasing economic impact of such disasters.
- Insurance challenges compound the problem, with rising costs and decreasing availability, especially in disaster-prone areas.
Key quote:
“There is no country — whether you are in Switzerland, whether you are in the U.S., whether you are in China — that is not exposed.”
— Jerome Haegeli, chief economist of Swiss Re
Why this matters:
Weather-related disasters strain public health systems, elevate living costs, and challenge economic stability. The report's findings strongly argue that every dollar spent on climate adaptation and resilience will yield future savings of $6 to $10. This essay by Robbie Parks argues that climate-related disasters are always going to happen, but we can mitigate the worst impacts with the right approach.
