A recent report from First Street highlights major U.S. metro areas like Miami and Sacramento, predicting steep increases in insurance premiums due to climate change. The research indicates a looming 29.4% rise in average insurance premiums by 2055, linked to climate risks and current underpricing. Moreover, demographic shifts are anticipated, with over 55 million Americans potentially relocating from high-risk areas. The findings underscore that economic growth may not suffice in retaining populations in climate-affected areas, signaling looming challenges for urban centers as they confront extreme weather events.
The report from First Street identifies Miami, Jacksonville, Tampa, New Orleans, and Sacramento as the five metro areas facing the biggest spikes in insurance premiums due to climate risk.
First Street estimates that unrestricted, risk-based insurance pricing would yield a 29.4% increase in average insurance premiums across the country by 2055.
The economic modeling predicts that more than 55 million Americans will voluntarily relocate to areas less vulnerable to climate risks by 2055.
Some metropolitan areas are projected to cross tipping points, seeing net declines in population due to severe climate change disruptions.
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