Heat is on insurance companies

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🔒 Disastrous events caused by climate change are a growing risk for the insurance industry.

Omen: The Knysna fires of 2017 cost the local insurance industry dearly. Research suggests that climate change is intensifying risks of wildfires in the United States.

Mega fires, such as those that raged through the Knysna area in 2017, could become more frequent, because temperatures and the number of high and extreme fire-danger days have risen as a result of climate change, according to a new report. The report, commissioned by Santam, provides recommendations to local authorities, government and the insurance sector in a bid to prevent similar wildfires. Its findings have also brought home the growing threat that climate change poses for the insurance industry.

It also comes as the Reserve Bank, which has become the country’s insurance sector regulator under the prudential authority, flagged the financial stability implications of climate change for South African insurance companies. “The effect of climate change on domestic insurers has been observed as extreme weather patterns that have increased the potential for liability claims, costing both insurers and clients more,” the Reserve Bank said in its latest financial stability review.

 

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This climate change thing is an excuse it seems for every gov and big business to charge higher taxes/prices. Looting scheme of the ages.

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