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.
Sponsor
Find a Vetted Financial Advisor
- Finding a fiduciary financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to 3 financial advisors that serve your area in 5 minutes.
- Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. Get on the path toward achieving your financial goals!
More from ClimateCrisis 247
- Saudi Arabia Goes Green
- It May Be Too Late To Stop Climate Change
- A Texas City Is Running Out Of Water
- As Arctic Ice Melts, Shipping Grows
