Insurance Companies Starting To Get It
The one sector of the economy that really will be on the frontlines of global warming is insurance. If they don't prepare they will be the first to go. And we have evidence that they are beginning to get it.
A coalition of big insurance companies, consumer groups, and environmental advocates are urging the United States to overhaul its disaster policies in the face of increasingly extreme weather due to human-caused climate change.
According to a report released Tuesday by the SmarterSafer coalition, the U.S. needs to increase how much it spends on pre-disaster mitigation efforts and infrastructure protection. That way, it asserts, the U.S. can stop wasting so much money on cleaning up after a disaster happens.
Any insurance company willing to offer thirty years of insurance on a house on a southern beach in Florida will find itself bankrupt before that thirty years are up. That probably goes for houses in the American Southwest as well. The Megadrought will certainly mean a lot of abandoned houses for lack of water in coming years. Insurance companies have to be the first to figure out what is going to be happening.