The $5 trillion global insurance industry's natural disaster problem

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How will insurance companies remain profitable in an era of climate change?

div > div.group > p:first-child"> According to one estimate, natural disasters caused about $340 billion in damage across the world in 2017. And insurers had to pay out a record $138 billion. The $5 trillion global insurance industry plays a huge role in the U.S. economy. Insurance spending in 2017 made up about 11 percent of America's GDP.

So, how will insurance companies remain profitable in an era of climate change? And what does that mean for the rest of us?

 

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Based on derivatives.

Need to be selective in who we insure and how much they pay.

seems like denying coverage to the most vulnerable has been a thing for twenty years

It can’t.

No one can stop an Ice Age~

well the dinosaurs didn't fare well with climate change

wiegert_betty It is BSBC 😳

They could begin by not insuring & investing in fossil fuels...

by raising premiums to homeowners who haven't even had any claims?

RobTr33 Now they file for Bankruptcy!

yes in the history of the world, only the past few years have we ever had forest fires...grow up, try to be a real news source..

Some racket they have going there !

When they refuse to cover any assets, liabilities, contingencies, etc. based on geographic proximity to coastlines. Provided the scale of the problem is as great as the usual suspects say and carriers' armies of actuaries are factoring those risks in, of course.

by not covering acts of God unless you pay thru the teeth and nose!!

Yes, that's surely the biggest concern. How does the scam insurance industry create new policies that pay for nothing.

Insurance and money management, the two biggest scams on humans. Who controls them?

I’m curious how the insurance is absolved, when it’s health insurance🏦

Government debt spending is worse, and the real reason GDP numbers are BS

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