Monday, September 25, 2023
HomeInsuranceIn the US, insurance companies are pulling back in the face of...

In the US, insurance companies are pulling back in the face of climate change and its disasters

Will climate disasters tip the US into a new financial crisis? The litany of natural phenomena linked to climate change is disrupting home insurance practices in the affected areas, the New York Times reports on Wednesday, May 31, 2023. Some companies no longer hesitate to cut back.

California’s largest insurance company, State Farm, will no longer write homeowner’s insurance in the state. Only those affiliated before May 27 will continue to receive security. The company claimed “rapidly increasing exposure to disasters“. In recent years, the state of California has been consumed by several wildfires. Entire areas have been evacuated and in 2017 more than 40 people died in fires, L’Express reported at the time.

⋙ Why do all South Koreans want to look one to two years younger in June?

“Risk has a price”

It is not the only state exposed to climatic events of pronounced intensity. In the summer of 2022, Kentucky, located in the eastern United States, was hit by floods that ranked among the most severe in its history. If the insurance companies have not neglected the owners, the prices have quadrupled, making the latter less and less solvent.

“Risk has a price,” pointed out the New York Times’ Toy Wright, former chief insurance officer at the Federal Emergency Management Agency, now in charge of the Insurance Institute for Business and Home Security.

⋙ Deadly floods in Italy: Global warming would not be decisive

Cost explosion

Florida could be the laboratory for the effects caused by the withdrawal of large insurance companies. Homeowners are struggling to get storm insurance as most businesses have left the area. Only small private insurance companies have been established, whose prices are still prohibitive.

⋙ Ukraine: “Beaver” drones directly target Putin, and Russia plays defense

Despite federal measures, insurance costs continue to explode. According to the authorities, taking out home insurance will require you to pay $1,808 compared to $888 today. The government is also trying to limit losses. At the same time, he will counteract the failure of the insurance market. A delicate operation, while the risks will increase further due to climate change.

also read

Do extreme weather events spread from one end of the world to the other and cause disasters?

Heat waves, record-breaking rain... How can we assess human responsibility in these extreme climatic phenomena?

Heat waves, record-breaking rain… How can we assess human responsibility in these extreme climatic phenomena?

El Niño, the climatic phenomenon that shakes the planet

El Niño, the climatic phenomenon that shakes the planet

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

%d bloggers like this: