Will climate change make Florida uninsurable?
On the same day that President Obama announced his new climate change proposal, a report from an insurance industry trade group urged action to counter global warming for a different reason. The report states that climate change factors could make it impossible to issue catastrophic risk insurance in some regions, such as Florida and the U.K.
Published by the Geneva Association, "Warming of the Oceans and Implication for the (Re)insurance Industry" reports that global warming “could create a risk environment that is uninsurable in some regions."
Global warming has led to a higher number of Atlantic storms, but houses and buildings may not be built to endure the increasingly severe weather. According to The Weather Channel, seven of the ten most costly storms in the U.S. have impacted Florida.
Amos Zeeberg writes for Nautilus that despite this gloomy forecast, the group takes on an activist tone:
"Rendering an entire U.S. state or nation 'uninsurable' is a pretty bad possibility for the people who live there—and for insurance companies that want them as customers. The report also takes a notably activist tone in encouraging the industry to help prevent this kind of outcome."