Public Policy Institute of California’s Post

Over the last few months, I’ve been speaking with homeowners from across the country who have been impacted by climate change—some in large and others in small ways. Some of their stories were devastating. One retiree lost his Long Island home during Hurricane Sandy and had to rebuild, only to find that his new home was uninsurable until he raised the foundation by 8 feet. He sold it, cut his losses, and moved to Georgia—thousands of miles from where he was born. Some were maddening. A Miami woman saw her insurance premiums triple in a single year without warning or explanation, making her monthly payment almost unaffordable and forcing her to consider picking up her life and moving. Others were ominous. A young mother in North Carolina who owns a home just miles from where she grew up has seen her home hit by a tornado almost every year since she bought it—a weather phenomenon she didn’t even know was possible in the town she has lived her entire life. Many stories involved people engaged in long battles with insurance companies to get their claims covered—battles involving disappearing insurance adjusters, lost records, months of unanswered phone calls, and endless frustration. Hearing all of this, what I found scary was that, for one, soon these people will no longer be the exception. Every year, as more and more people are impacted by extreme and unprecedented weather, these stories will become the norm. But beyond that, as climate change ramps up and lagging housing and insurance markets adjust, millions of people in the U.S. are not only at grave risk physically but financially—a fact which so many of the homeowners we spoke with seemed oblivious to. Even if nothing happens to their homes, the financial consequences of climate change could seriously devalue their homes —which are also their investments, livelihoods, retirement plans, etc. The insurance industry is, for better or worse, at the center of this crisis. In some ways, its hands are tied. Until regulators and policymakers take action, they will continue raising premiums, denying coverage, and exiting riskier markets. Still, there are opportunities to rise to the occasion. First, insurance can and should (IMO) immediately divest from fossil fuels, which are undeniably fueling the crisis. They can also be leaders in cultivating climate resilience. This research uncovered dozens of CX opportunities for insurance to step in long before homeowners ever experience a claim—opportunities to leverage data to help homeowners make more informed decisions, to incentivize risk mitigation, to build solidarity with homeowners and their communities. As author Deb Chachra recently said on the podcast Culture Study: “There is nothing inevitable about what happens next. There is no too late. Every step that we take to try to address these things will have an impact. It’s not an all-or-nothing proposition. It’s just going to be the work for a while.” #insurance #homeowners

Yet more signs of climate change's impact: #insurance. The issue of uninsurable homes is already impacting where people choose to buy. Where insurers have pulled out of states, homeowners take so-called "last resort” plans. Yet these policies are hugely underfunded, especially in the most climate-vulnerable areas, like Florida and California, to the tune of hundreds of billions of dollars https://lnkd.in/ghjG4pVx

The impact of climate change on the insurance market is becoming increasingly severe, mirroring the pre-2008 housing market crisis. A recent Senate Budget Committee hearing highlighted that rising home insurance premiums, driven by frequent and severe weather events, are pushing insurers out of high-risk states like Florida and California. Florida now has the highest insurance premiums in the nation, with residents paying an average of $6,000 annually. Experts warn that the growing risk and exposure to natural disasters could strain the insurance system's capacity, leading to long-term financial instability. This situation underscores the urgent need for sustainable solutions to address the escalating challenges posed by climate change. #ClimateChange #InsuranceIndustry #RiskManagement #SustainableSolutions

🌪️ #InsuranceExodus: A Reality Check from #ClimateChange! Hey LinkedIn fam! Here’s something that might just shake up your morning coffee more than the latest espresso shot. 🚨 🏡 #DidYouKnow that major insurance companies are packing up from California, Florida, and Louisiana faster than tourists leave when the vacation’s over? Yeah, it’s all about the escalating risks from natural disasters. 🏖️ ⇢ 🌊 🔥 With hurricanes, floods, and wildfires becoming the new norm, these insurers are saying a big “NOPE” to escalating losses. Senate Democrats are on a quest, Sherlock-Holmes-style, to pinpoint where this insurance game of musical chairs will stop next. 🕵️♂️ But here’s the kicker - this isn’t just about whether you’ll need to start DIY-ing your home protection. It’s about our homes, our communities, and, yep, our entire economy. 🏗️ 📉 💡 Banks need insurance like we need coffee in the morning. No insurance, no mortgages. No mortgages, hello plummeting real estate values! This could be more dramatic than the 2008 housing crash. 😱 🌍 #ClimateChange isn’t just about polar bears and ice caps, folks. It’s real, it’s here, and it’s messing with your home insurance. 🐻❄️❄️ 📚 So, what’s the lesson? Maybe it’s time we all start thinking about how climate change affects not just nature, but our wallets too. Because, let’s face it, when Mother Nature speaks, we better start listening. 🌱👂 🤝 Let’s discuss! How should we prepare for this? Should there be new laws? More coffee for thought! ☕💭 https://lnkd.in/dfaVtMn6 #ClimateAction #EconomicImpact #RiskManagement

Work can often come home with you, but trying to find insurance for our first house earlier this year was a firsthand reminder of how badly the insurance markets have been hit by climate change. It took weeks of back and forth to secure the insurance we needed to close, even with a home outside of flood zones and a newly sealed roof. Articles like this show how widespread the problem has become, and highlight the need for reforms to help our communities (and systems) adapt to and prepare for climate impacts. It's important that people aren't left without any safety nets. https://lnkd.in/dRfTxABf

These are valuable insights into the complex challenges confronting homeowners across the United States. It's true - extreme weather has a direct impact on the insurance market. State leaders are working hard to create strategies to retain insurance companies, but the reality is that the industry is confronting unparalleled obstacles. This is a fundamental change that warrants everyone's attention. Our landscape is shifting underneath us. #InsuranceIndustry #Climate #Insurers #PropertyInsurance

Feeling the heat from soaring home insurance costs in high-risk zones like Florida? You're not alone. As climate risks intensify, so does the weight on our shoulders. Between 2017 and 2021, average annual insurance premiums rose by over 3%! This surge can lead to more disputed claims and increased workload for adjusters. As adjusters, we need to discern liabilities, interpret complex policies and stay on top of changing coverage terms. Having queries about policy coverage limitations? Wondering how to deal with a surge in workload or disputed claims? Let's navigate these uncharted waters together, drawing upon our collective knowledge and expertise. Consider this: are our strategies prepared to handle this new wave of change? Connect with me to explore strategies to stay resilient amidst these turbulent insurance tides. #InsuranceAdjusting #ClimateRisk #InsuranceCosts #FloridaInsurance.

🌍 As climate change accelerates, its effects are becoming starkly visible: more frequent and severe storms, wildfires, and hurricanes are displacing millions of Americans annually. However, the ripple effects on the insurance market are equally alarming. Insurers are facing skyrocketing costs to repair damaged homes, leading to higher premiums and even withdrawal from certain markets. This upheaval threatens the broader economy by potentially lowering real estate values and local tax revenues. A recent The New York Times article from climate reporter, Christopher Flavelle, highlights the widespread disruption in the insurance industry, revealing that threats like wildfires, hail, and windstorms are becoming more intense and frequent. States across the Midwest, Southeast, and West are experiencing increased rates and reduced coverage availability. 📈 This evolving landscape underscores the crucial role of advanced probabilistic models. At KatRisk, we are committed to leveraging high-fidelity probabilistic models to better anticipate the severity of catastrophes and accurately price insurance. Our clients have been using our models to reliably evaluate these risks, build more sustainable strategies and satisfy regulatory requirements (ie: the requirements of the Task Force on Climate-related Financial Disclosures (TCFD) in the UK). Our models provide critical insights, helping insurers navigate these challenging times and ensure financial stability for homeowners. 🔗 Read the full article here: https://lnkd.in/dczP3CCH #ClimateChange #InsuranceMarket #RiskModeling #KatRisk #ProbabilisticModels #ClimateResilience #SoftwareInsurance

Colorado isn’t alone in facing insurer departures. Across the nation, climate risk is driving up costs, making insurance unaffordable and even unavailable for many. #getquoll #quollintelligence #climatechange #climaterisk #climatechangeadaptation #financialprotection https://lnkd.in/ggb-tXRS

🌍💸 Rising tides = rising costs! The housing insurance sector is the canary in the coalmine. 🏡🌪️ Will house insurance costs and refusals start to influence opinions on climate change in the US and elsewhere? 📈💔 In Virginia Beach, just a stone's throw from the seafront, homeowners are facing a stark reality. The FT's Big Read from 10 days ago featured some house owners experiences of being abruptly dropped by their home insurers, and they are far from being isolated incidents. Their stories highlight a growing crisis: as global warming intensifies storms, floods, and wildfires, securing affordable home insurance is becoming an uphill battle. 🏠🚫 Insurance brokers, like Kevin Torcia in the article, are witnessing a surge in calls from distressed homeowners. Last year marked a record in insurance affordability crises, with natural catastrophes pushing losses beyond $100bn for 4 consecutive years. This alarming trend has forced insurers to hike premiums and retreat from high-risk areas, leaving many to wonder if their homes are becoming uninsurable. 🌏💰 The link between man-made global warming and escalating insurance costs is now undeniable. Industry leaders are sounding the alarm, recognizing the urgent need for action. Yet, as premiums rise, reflecting the true cost of our carbon footprint, the backlash from consumers and politicians is palpable. 🌐🔥 The crisis transcends borders, affecting households worldwide. From Europe to Australia, the narrative is the same: increasing insurance premiums and the daunting prospect of uninsurable properties. This situation not only threatens individual financial stability but also poses broader economic risks. 🕰️🌧️ As we face a future where natural disasters are more frequent and severe, the question of insurance affordability is not just an industry challenge but a societal dilemma. The stories of in the article, and countless others serve as a clarion call: the time to address the impacts of climate change on insurance is now. #ClimateChange #Insurance --------------------------------------- 📞 📧 Contact me or OWC if you want to chat about support for your renewable energy project, investment, or market entry. ➡ Subscribe to the loudest, most seriously caffeinated #OffshoreWind newsletter on LinkedIn 👉🏼 https://lnkd.in/evdXr-QH