Homeowners are particularly affected by extreme weather claims, with recent hurricanes, floods, and unprecedented wildfires leading to insured claims costs above yearly averages.
Insurers paid out an average of $400 million per year for catastrophic insurance claims between 1983 and 2008, a number that rose to almost $2 billion annually from 2009 to 2023.
Returns on equity for the insurance industry have fluctuated significantly due to extreme weather events, with insurers maintaining profitability mainly through increased premiums.
Insurers are staying viable only because premiums have increased due to severe weather events, leading to homeowners feeling financial strain alongside the impacts of climate change.
[
add
]
[
|
|
...
]