Can you insure against climate change? | The Economist


Extreme weather events like these are becoming more frequent Fire seasons growing longer and more intense Florence could produce 50% more rain… …than it otherwise would have… …in a non-climate change environment I don’t know how to describe this… …other than we’re in the middle of a climate emergency right now It’s not just causing untold human suffering… …but also ever-growing economic costs As the losses pile up, will insurers be able to cope with the damage? In 2017 Hurricane Harvey… …mudslides in Sierra Leone… …and monsoon floods in South Asia… …all contributed to the largest year on record for insurance losses… …with payouts totalling $144bn In America for example between 1980 and 2015… …you had about five events a year… …that each cost more than $1bn in damage Since 2016 it’s been an average of 15 events like this a year This leaves the insurance industry uniquely exposed… …and having to pay out a lot of money all at once Insurers aren’t helped by the obsolete information they rely on either They find it hard to predict when this happens because their models are… …not really taking into account climate change They look at maybe 30, 40 years of data… …and they assume that the environment within these data… …this period is pretty stable So these models look at a world that doesn’t really exist anymore And it’s no surprise what’s now happening to the price of insurance If you look at the last quarter… …premiums on property insurance in America rose by 10%… ….in Australia and New Zealand they rose by about 18% And at some point premiums may simply become unaffordable… …especially so as disasters regularly happen in places where… …people can least afford to pay high premiums Half of last year’s losses from natural disasters were uninsured And in America 85% of homeowners have no flood insurance… …even though half of the population lives near water Increasing premiums might just lead to… …even more people being left out in the cold But there are some more novel solutions So, for example, Lloyd’s of London has a policy that sends… …€1,000 per hectare to Spanish olive farmers… …as soon as the temperatures reach 36 degrees So these are very simple solutions to put in place… …very easy to implement and also quite cheap in fact… …which is the main advantage Rather than compensate the farmers after their losses are reported… …insurance companies monitor a specific parameter… …such as rainfall or temperature When this passes an agreed threshold they pay out a lump sum Known as parametric insurance… …this approach can help the insurance companies cut costs… …and in turn bring down premiums for the consumer But as the climate crisis worsens… …the same challenges are likely to re-emerge We cannot expect insurers to save us from climate change… …because the world fundamentally cannot be insured against climate change …because the world fundamentally cannot be insured against climate change However many companies already offer discounts… …to homeowners who for example… …install metallic shutters on the windows or flood-proof doors But they could make a more drastic step So a city on the coast wants to build flood defences This will require a lot of money but perhaps insurers… …maybe in cooperation with banks could offer some financing… …for them to do that They can help us design solutions or take measures that will limit losses And this is really the crucial role they can play

48 comments

Sure, sure…imagine that 99% of all car owners call their insurance companies today…would they have the money to pay for all the losses ?

Its a scam folks. Its a political scam like nothing else. What are the believers of global warming disaster doing? NOTHING. Do they stop CO2 production? No. Methane production? NO. THEY DO NOT BELIEVE IT EITHER!

When insurance companies sells you higher premium and banks don't want to loan anyone money to buy a house, that's when you know something is up.

Insurance industry has to make returns on capital like any other industry. For high risk areas there will not be any insurance available, it will be up to governments to develop and subsidise pooling arrangements for exposed areas!

Insurance company’s Don’t care about YOU,, They just want your money, and argue about Paying out later 🤔⁉️👎🏼👎🏼👎🏼

The earth is dynamic, the only reason these very normal weather events appear to be happening more is all the humans reporting on and attributing them to, climate change have recording mobile phones

Toxins give millions of people cancer
Cognitive damage to children's brains

DNA Damage to humans + all animals
Science can now prove a direct cause

Monsanto bribed politicians is also evidence

Climate panic is an engineered distraction

No one is talking about Toxins + Fukashima

100's of Trillions in Liabilities to the Guilty Elite

They knowingly
Spray toxins on the food
That give millions of people cancer !

Why are we not talking about
This provable Crime Against Humanity ?

The climate declared war on people who have forgotten about mutual respect for each other ! This is terrible … People forgot about those who will live tomorrow ! Helpful video that reminds and gives a signal !
Thank You so much dear The Economist for Your very important job and information !
My deep respect !

Total falsehoods. There is no evidence of increasing natural disasters. Just an increase in media frenzy because disaster brings ratings ! The increase in damage is simply because the increased building, technology, and number of people results in increased replacement costs from the same disaster events .

Governments should take positive move for Climate Change Insurance. If they think it's a hoax, then people's suffering would be on their shoulders.

Don’t listen to this non sensible corruption. This is all a device for the New World Order and an agenda to veer people away from knowing this is FATHERS JUDGEMENT THAT WAS WRITTEN IN SCRIPTURE. This is the ABYSS being opened and the earth reversing. CLIMATE CHANGE ISNT CLIMATE CHANGE….. IT IS FATHERS HANDS ENDING THE AGE OF A REPLICA SODOM AND GOMORRA. May Jesus Bless You.🌹🌹🌹✨✨✨👑👑👑🌱🌱🌱🌱🌞🌞🌞🌞🌞🌞🌞🌞🌞🌙🌙🌙

as an underwriter, this is alarmist trash. a 10% increase in property insurance cost is nothing to be concerned about. look at the current commercial Auto liability market, 200% annual rate increases are not uncommon.

Saying actuarial models don't account for climate change is contradictory to rising premiums. Premiums are the output of actuarial models

Matthieu Favas is a WEALTH OF MISINFORMATION. The question is he intentionally misleading or does he just not know any better? I think it is a bit of both. It’s called confirmation bias.

Here’s a few general facts.

1. There are more people. A lot more.
2. There is more property. A lot more.
3. The value or cost of the property has increased.
4. People live across a much wider geographic region than previously, which means more disasters will,impact humans each year. This has also resulted in people being forced to live in more disaster prone areas. In other words, if you double the geographic region over which people live, you will more than double the number of disasters impacting humans. This is true for disasters such as earthquakes which are largely independent of Climate Change.
5. Insurance companies are not nearly as dumb as you think they are. Your lack of understanding is YOUR lack of understanding. Insurance companies don’t just look at incidence over a 30-40 year period. They look at trends, too. Now, their models may still not be accurate, but they are smarter than your simplistic explanation. Look up the the Dunning-Kruger effect.
6. You should also study Bartlett’s Law. “The greatest shortcoming of the human race is our inability to understand the exponential function."

In short, Climate Change is only a small factor in the growing insurance claims. This would be happening in the absence of Climate Change.

This is the problem with the Climate Change INDUSTRY. And it is a business or racket. You blame everything on Climate Change without understanding what the fuck you are talking about. Just like the deniers, you suffer from confirmation bias. However, this makes it much easier for the deniers to debunk your foolish arguments. In plain English, you are full of shit.

I’ve lives next to the ocean for 40 years and my coastal water levels have stayed the same…Global warming is fake until I see water rise

Talk about alarmist bullshit. Whatever gets the clicks eh? Quickly, throw the virgins into the volcano to appease the gods so they fix the weather. Can anyone give me a link to an economist video talking about the record low hurricanes touching the Americas in the 8 or 9 years prior to 2017?

Well whats yer obsession with me Iam me NO ONE FUCKIN ELSE I expect this faggot Danny beat up crippled and being the faggot he is that son of a bitch will never me not even half or a quarter Iam

It was climate heating, wasn't It? Ohhh the data does not proves. Well lets change the speech só se can enslave other people to our will. Fuck You colonialists european.

Sad to see that people would be asked to go to any lengths for adjusting with climate change instead of just stopping it, and we know for sure that the costs of not acting are higher than the scenario where we stop changing the climate

Fake news !!

https://youtu.be/jQRle6pgBCY

https://youtu.be/M8iEEO2UIbA

https://youtu.be/-ihYX7UR-3Y

https://youtu.be/4JJ3yeiNjf4

https://youtu.be/Esl4CpPmClw

https://youtu.be/NjlC02NsIt0

Is there predatory capitalism, criminal cartel insurance or psycho elite insurance? Same thing as climate change hoax insurance ⬇

> GeoEngineeringWatch.org
> Tony Heller = global temperature facts and information…

Flip towns off-grid, 1-Mw•1300hp, 17yr R&D; "50-year no-inputs warranty"; Belgian: technokontrol.com, the RF-5000, sparkless for use with explosives.

Home farm ranch; 10kw•$15k, 5kw•$8k, 20-year wrnty; S. Korean: infinitysav.com, (magnets are 90% full power 1000years from mfg).

Forget oil wars, these 2 small companies are the long-term, beaten path to zero emission, tiny carbon-footprint, no water per Mwh electricity.

And, for transportation where EVs become MVs, magnetic vehicles, and never need "refueling" or "recharging" for the lifetime of the owner.

We must go full nuclear!. The safest, I repeat, the safest, cheaper, cleanest, and the least landscape intrusive energy. And non intermittent, by the way. Should not were for the taxes imposed by stupid or corrupt governments on the taxpayers for the subsidies for solar and wind, they wouldn't exist. It's a big scam for the hard-earned-money workers. STOP THE UNRELIABLE AND EXPENSIVE WIND AND SOLAR CRAZINESS:

https://www.nytimes.com/2019/04/06/opinion/sunday/climate-change-nuclear-power.html

https://blogs.scientificamerican.com/the-curious-wavefunction/nuclear-power-may-have-saved-1-8-million-lives-otherwise-lost-to-fossil-fuels-may-save-up-to-7-million-more/

https://ourworldindata.org/what-is-the-safest-form-of-energy

https://ourworldindata.org/grapher/death-rates-from-energy-production-per-twh

https://www.politico.eu/article/germanys-green-dreams-run-into-climate-change-reality-nuclear/

https://grist.org/article/its-time-to-go-nuclear-in-the-fight-against-climate-change/

https://www.technologyreview.com/s/601533/nuclear-shutdowns-could-ramp-up-us-carbon-emissions/

https://www.nationalreview.com/2016/06/wind-energy-subsidies-billions/

https://wattsupwiththat.com/2019/01/27/germany-totally-kills-coal-will-likely-end-up-in-the-dark-without-heat-and-light/

https://unearthed.greenpeace.org/2019/03/28/china-new-coal-plants-2030-climate/

https://www.nei.org/advantages

It's the SUN, stupid!!!:

https://www.nature.com/articles/s41598-019-45584-3

https://humanevents.com/2014/03/24/the-carbon-dioxide-level-is-dangerously-low/

CO2 is very GOOD (look at the increase in crops worldwide in recent years: http://www.fao.org/worldfoodsituation/csdb/en/ ). Pollution is BAD.

The Earth is getting greener because of CO2:

https://www.nasa.gov/sites/default/files/thumbnails/image/global_tamo_2017_full.png

https://realclimatescience.com/2019/07/extreme-fraud-by-the-union-of-concerned-scientists/

https://notrickszone.com/

https://www.youtube.com/playlist?list=PLQn80yPe70TY-rRsIX-G9_brj8Tksmvhb

https://youtu.be/55-jBCjtJ88

If the carbon dioxide is so bad for the climate, how is it explained that during the years 1934 to 1937 such great natural disasters (heat waves, floodings,…..) occurred in the USA with half the concentration of carbon dioxide in the atmosphere of which we have nowadays?.

https://www.youtube.com/watch?v=M_yqIj38UmY&t=3s

Stop the climate catastrophism Mafia!!!!! Human-caused temperature increase is a FRAUD!!!!! CO2 IS GOOD, VERY GOOD. POLLUTION IS BAD.

It's up to the individual to provide themselves with their own financial safety net. If they don't want to pay for insurance, they have to receive the damaged that come with storms. That's how it has to be.

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