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Insurance Agencies In Panic Over Climate Change Profit Losses!



The BBC reports: "Extreme weather events are making it hard to insure homes in certain parts of the US. What happens when insurance companies simply stop insuring?"


In 2022, insurance firm AllState paused selling new home and condo insurance policies in California. "Our payments to help California residents recover from accidents and disasters have increased significantly in recent years due to higher repair costs and more frequent and severe weather," says a spokesperson for AllState. "We continue to offer coverage to most existing home insurance customers."


In 2023, State Farm, one of the US' biggest insurance providers, announced it too would stop selling new home insurance policies in California. "[We] made this decision due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market," a statement from the company read. Insurers are withdrawing from Florida entirely due to their view of the business environment, leaving property owners to scramble for coverage from Citizens Property Insurance, the state-run insurer of last resort, or to forgo property insurance entirely. This isn't happening randomly.


Three primary factors are driving the insurance challenge. First, natural disasters are becoming more common and costly. Second, the price of reinsurance is skyrocketing. And finally, Florida's litigation-friendly environment compounds the issue by making it easy for customers to sue their insurers.Since 2017, eleven property and casualty companies that offered homeowners insurance in Florida liquidated. Five of those companies liquidated in 2022, and United Property & Casualty Insurance Company liquidated in 2023.


Texas has seen a year-to-date increase in 2023 of 16.4 percent and a cumulative increase since 2022 of 50.9 percent in home insurance rates. This makes Texas one of the states with the greatest increase in that period, according to S&P Global. In 2023, there were 26 weather and climate disasters with losses exceeding $1 billion in the United States , according to the National Oceanic and Atmospheric Organization NOAA. These included a drought, two floods, 18 severe storms, one tropical cyclone, one wildfire, and one winter storm. Overall, these events resulted in the deaths of 373 people and had significant economic effects. By comparison, between 1980 and 2022, the typical annual average for events like this was eight. For the most recent five years, the annual average has been 18 events. Berkeley Earth, an independent climate research group, that reported that 2023 was 1.54°C, or 2.77°F warmer than the planet's pre-industrial average. The past 12 months brought extraordinary drought, deadly rainfall, and searing heat waves.


Governments across the Globe are stuck on stupid pretending Climate Change isn't happening. This is expected: no country would risk the financial stability of the realm to ensure CO2 emissions are slightly reduced and waters are kept cleaner. Yet few in the highest echelons of power will admit to moving backwards on environmental policy, and would rather people just forget about global warming. Paradoxically, not doing anything to tackle climate change is the surest way of all to destroy jobs and impede long-term economic growth.


The majority of the world's leaders are basically idiots who think if they ignore the problem it will go away or become someone else's problem. In 2014 Meteorologists have been banned from discussing climate change in public by the Canadian Government. The shocking move to gag weather experts highlights Canada’s wavering commitment to environmental issues. In June, the government joined forces with Australia by publicly forsaking climate change in favor of financial growth. Prime Minister Stephen Harper said environmental sustainability was “not the only or even the most important” problem the world faced, at a joint conference with Tony Abbot in Ottawa. The pair played down the possibility of coordinated global action on climate change.

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