Unum
2024-12-31 02:41:19 UTC
https://www.anthropocenemagazine.org/2024/12/can-insurance-as-we-know-it-survive-climate-change/
“Insurers used to cross-subsidize people at highest risk out of ignorance
because they didn’t know any better,” one insurer said. That’s no longer the
case, so the people who most need climate insurance are finding their premiums
sky-rocketing. Homeowners in hurricane-prone Florida pay an average of over
$11,000 for home insurance—triple that of less vulnerable states. In the US,
about 13% of homes have no insurance at all, and up to 40% in parts of
Florida.
Seven of the top 12 insurance carriers have either cut existing homeowners
policies or stopped selling new ones in the wildfire-prone California
homeowner market, and an equal number have pulled back from the Florida market
due to the increasing cost of hurricanes.” That has led to the emergence of
“insurance deserts,” where commercial insurance is not available at any price.
“Insurers used to cross-subsidize people at highest risk out of ignorance
because they didn’t know any better,” one insurer said. That’s no longer the
case, so the people who most need climate insurance are finding their premiums
sky-rocketing. Homeowners in hurricane-prone Florida pay an average of over
$11,000 for home insurance—triple that of less vulnerable states. In the US,
about 13% of homes have no insurance at all, and up to 40% in parts of
Florida.
Seven of the top 12 insurance carriers have either cut existing homeowners
policies or stopped selling new ones in the wildfire-prone California
homeowner market, and an equal number have pulled back from the Florida market
due to the increasing cost of hurricanes.” That has led to the emergence of
“insurance deserts,” where commercial insurance is not available at any price.