Extreme Weather Insurance Costs Hit $145 Billion
According to the World Economic Forum, extreme weather insurance costs will hit $145 billion this year, and uninsured costs could reach the same levels.
The authors of the analysis write, ‘Primary perils’ like hurricanes and earthquakes pose the biggest risks, potentially driving insured losses to $300 billion or more in a peak year, says the reinsurer Swiss Re.
Hurricane Factor
Swiss Re also proposed a partial solution. Public and private interests should work to strengthen infrastructure and preparedness. These solutions have rarely worked in the past.Â
Insured losses of this magnitude mean that insurance companies pull out of some areas completely or raise rates to levels that cannot be maintained by the insured. Uninsured losses could increase, ruining some residential areas and industries.Â
In the US alone, the price of both insured and insured weather catastrophes likely reached $50 billion last year. According to ABC News, “Los Angeles fire losses could reach $30 billion for insurers.” Once again, this does not include uninsured losses.Â
 The insurance price tag will likely increase along with global warming and its effects.
More from ClimateCrisis 247
- Trump Wants More Nuclear Power
- The Great Salt Lake Is Almost Gone
- Climate Crisis Insurance Catastrophe Threatens US Economy
- Hawaii Adds Huge Climate Change Tax For Tourists
