Climate change is wreaking havoc on the global insurance market - MPR News
Climate change is wreaking havoc on the global insurance market | MPR News
Climate change is wreaking havoc on the global insurance market
A home is completely destroyed after the Creek Fire swept through the area near Shaver Lake, Calif. Wildfires, floods and other intense climate events are causing chaos for insurance companies.
David McNew | Getty Images
Climate change is wreaking havoc on the global insurance market. That’s the takeaway from a piece in Grist that points out natural disasters now cost the U.S. insurance industry $100 billion a year.
Lois Parshley wrote about the trends in the first of a 4-part series for Grist.
To hear the full conversation, click play on the audio player above or subscribe to the Climate Cast podcast.
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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Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”