A string of severe weather events, rather than a single major hurricane, has led to a significant increase in insurance losses, signaling a costly trend for policyholders.
Leslie Kaufman reports for Bloomberg.
In short:
- Insured damages from natural catastrophes are expected to double within a decade, with premiums rising to match the risk.
- Last year, smaller events like thunderstorms were the main culprits behind the damages, with the U.S. experiencing the brunt of the costs.
- Climate change contributes to the frequency and intensity of these events, though inflation and behavioral changes also play significant roles.
Why this matters:
The nature of global markets means that insurers can no longer afford to ignore the broader impacts of climate change. Disruptions in supply chains, infrastructure damage, and business interruptions stemming from extreme weather events all have ripple effects on insurance costs.
Disasters are not natural. We—humanity and society—create them and we can choose to prevent them.
