The wildfires in Los Angeles underscore a dire reality: climate change is jeopardizing homeowner insurance systems, making it challenging for families and communities to rebuild. With insurance models based on historical risks proving inadequate due to these evolving climate risks, the insurance industry faces a critical crossroad. Traditionally, insurers calculated premiums based on past data, but today's heightened climate changes demand a reevaluation. Without functional insurance markets, economic stability may be threatened, highlighting the essential role that accurate risk communication plays in societal safety and welfare amidst climate adversity.
In a world impacted by increasing climate risk, traditional insurance models no longer apply.
This breakdown is starting to become painfully clear as families and communities struggle to rebuild.
While insurance companies are often cast as villains, when the system works well, insurers play an important role in improving social welfare.
Some degree of suffering is inevitable after all, humans have already raised the average global temperature by 1.6 degrees Celsius.
Collection
[
|
...
]