Hail Starts To Destroy Insurance Financials
For years, but particularly the last year, the news has been full of stories about insurance companies raising rates or leaving some geographic areas completely. People have been left with unaffordable insurance or no access to insurance at all. This has been particularly true on the west coast of Florida, where the high-wind wildfires plagued part of LA.
The footprint of violent weather has spread. This week bore testimony to that. California was hit by near-record rains, Texas and Oklahoma were hit by wildfires, and unusually high winds, tornados, and thunderstorms wrecked the middle of the US.
Strong Storms In The Midwest
An effect of the strong storms in the Midwest is that insurance rates in these areas have skyrocketed. According to The Wall Street Journal, “Repairing storm-damaged houses across the American heartland has grown so expensive that insurers are increasing premiums and dropping vulnerable homes to protect profits.” That means there is yet another area of the US that people cannot afford.
The hail news triggers two unfortunate consequences. The first is that people who cannot afford to live where they do may have nowhere to go. There may be no other place where they can make money. There may be nowhere they can go without isolation.
People Isolated
The other byproduct is the strain on insurers and reinsurers, who are at the heart of much of the financial systems that allow commercial and residential parts of the economy to run as they have for decades. That may be coming to a close.
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