Faced with year-over-year multibillion dollar losses, insurers are struggling with the increased frequency and destruction of climate change-induced weather events. Many companies have responded by raising premiums, exiting risky areas or reneging on their pledges to decarbonize by 2050. This has serious implications for US households, businesses and financial companies that rely on insurers as a vital backstop against disasters.
While insurance companies are regulated at the state level, the fact that climate-related events often affect many states at once highlights the need for greater federal involvement in overseeing markets.
The above excerpt was originally published in Bloomberg.
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