Insurance Companies: Consider Climate Risk Events As “Constant Threats” — CleanTechnica Exclusive

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To fill the gap in insurance due to climate risk events, agile, scalable, and innovative companies are stepping in.

In the US, climate risk events are occurring more frequently in places where development was once deemed safe but now is larger than initially anticipated. Insurance is one of the non-environmental systems that enables us to live our daily lives with the knowledge that our property is protected. Up until recently, most people weren’t concerned with how their ability to be insured would change — until catastrophic climate disasters began to wreak havoc on communities around the country.

The Florida market is home to several smaller insurers who rely heavily on reinsurers and the booming housing market along coastal counties, which are more prone to flooding and hurricanes. Hurricanes are incredibly costly: Hurricane Ian caused $113 billion in damage. To fill the gap in insurance, agile, scalable, and innovative companies are stepping in. They’ve taken actions to improve their company’s financial strength, which Shay indicates involves much more than “dropping higher-risk policies,” which he says will not prove to be a sustainable business model for most insurers. Instead, insurers should focus on keeping portfolios in balance in addition to standard practices of diversification.

 

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المملكة العربية السعودية أحدث الأخبار, المملكة العربية السعودية عناوين

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