Climate change impacts the bottom line for insurance companies and their insureds. As every year to come is anticipated to be the hottest on record, we are beginning to see the impact of our warming climate and increased extreme weather events across different markets. The recent news concerning Florida’s homeowners’ insurance market disfunction has shown that undeniably, measuring risk in certain areas of the country has become relatively risky.
According to Swiss Re, global natural disasters in 2023 accounted for $100 billion in global insured losses for the fourth consecutive year in a row. The issue comes down to lack of data about the exposure to risk that climate change generates as global warming impacts the frequency of storms, floods, wildfires, sudden temperature fluctuations, and other extreme weather events pushing up costs for the insurance industry.
