. In turn, we should let the market do its job, allowing businesses and households to make decisions about mitigating the risks of extreme weather events. That approach will mean the federal government doesn’t have to keep borrowing from future generations to deal with the unknowable.
We don’t have conclusive answers about weather and climate. But that’s not the point. What matters is that the market absorbs all information on a daily basis and allows consumers, both business and also households, to make decisions about what might happen regarding the weather. The market is the collective wisdom of the nation. The market works.for homeowners and vehicle insurance. Two devastating hurricanes have struck the region in the past seven years.
losses incurred in prior years. Insurance and reinsurance companies must generate profits. Otherwise, they will exit the insurance industry. If there is no insurance industry, everyone is on their own and could be wiped out by the next extreme weather event. Moreover, if the state becomes the insurer, inefficiencies and cronyism will follow as will higher tax bills to pay for state-provided insurance.After current rate increases, insurance companies will be made whole.