The reinsurance market is being forced to re - evaluate risk models because of heavy losses from natural catastrophes , climate - change risk and long - term losses from events such as Hurricane Michael , which hit Florida in October 2018 causing losses more than 45 % higher than initial estimates . Meanwhile , losses from Californian wildfires in 2017 and 2018 reached more than that of any previous decade . The unpredictability of climate change could affect whether extreme weather events can still be insured .
The reinsurance market is being forced to re-evaluate risk models because of heavy losses from natural catastrophes, climate-change risk and long-tailed losses from events such as Hurricane Michael, which hit Florida in October 2018 causing losses more than 45% higher than initial estimates. Meanwhile, losses from Californian wildfires in 2017 and 2018 reached more than that of any previous decade. The unpredictability of climate change could threaten whether extreme weather events can still be insured.