California's homeowners face an insurance crisis as wildfires worsen due to climate change. The insurance industry has dropped many homeowners, raised premiums, and stopped new policies in California. Dave Jones, former insurance commissioner, cites severe weather events and expanded real estate in high-risk areas as contributing factors. The rising costs of property replacement add financial pressure on insurers. Current regulatory changes permit higher rates reflecting climate risks. These factors indicate a broader systematic issue within the insurance sector exacerbated by environmental challenges.
Insurance is the climate crisis canary in the coal mine, and the canary is dying. Severe-weather events are more common and extreme because we're not doing enough, fast enough, to transition from fossil fuels and other greenhouse gas-emitting industries.
The principal driver really is climate change, but these other aspects of the problem are contributing to insurance company losses as well.
The state is now phasing in reforms that allow insurers to increase rates based on the growing threat of climate change.
More people and more businesses are in harm's way as we have expanded real estate development in areas that are being hard hit by climate change.
#insurance-crisis #california-wildfires #climate-change #real-estate-development #insurance-regulation
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