California to allow insurance companies to factor in climate change for pricing, aiming to stabilize property insurance market - KRCR
California to allow insurance companies to factor in climate change for pricing, aiming to stabilize property insurance market | KRCR
California to allow insurance companies to factor in climate change for pricing, aiming to stabilize property insurance market
by Arianna Martinez
California Gov. Gavin Newsom speaks during a news conference in front of the Daguerre Point Dam on Tuesday, May 16, 2023, in Marysville, Calif. Local, state and federal officials plan to build a channel around the dam so threatened species of fish can access more habitat. (AP Photo/Adam Beam)
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”