Insurance Industry Feels the Heat of Global Warming

Severe droughts and floods, fires and blizzards, batter properties worldwide along with the insurance industry. As a result, a task force for the National Association of Insurance Commissioners will assess the impacts of climate change on the American insurance industry. This follows up on discussions in Europe, where insurers have warned about “massive financial losses from storm patterns aggravated by global warming.” Last year, was the most expensive on record for natural catastrophes, with losses of more than $210 billion, according to insurer Munich Re. Recent trends have been ominous for the US: Insured losses due to weather have grown 10 times faster than premiums since 1971, six of the ten most powerful hurricanes have occurred in the past 13 months, and coastal development continues unabated. With its survival depending on accurate calculation of risk, the insurance industry could take a leadership role in treating global warming as a serious threat, preparing for disasters and changing land-use policies. – YaleGlobal