The insurance sector could benefit from greater numbers of people looking for protection due to climate change, but the likelihood of extreme weather events and a water shortage could also mean more claims. “Insurance companies are going to have to be very careful about how they manage their risk in this new environment,” said David Jones, an economist at the University of California, Berkeley. In addition, the National Flood Insurance Program has said the number of properties reporting a second loss has risen by 67%, with the programme now nearly $25bn in the red.
The insurance sector could benefit from greater numbers of people looking for protection due to climate change, but the likelihood of extreme weather events and a water shortage could also mean more claims. A study by CoreLogic found almost seven million homes along the Atlantic and Gulf coasts of the US are at risk from hurricane damage, with reconstruction costs estimated at more than $1.5tn. In addition, the National Flood Insurance Program has said the number of properties reporting a second loss has risen by 67%, with the programme now nearly $25bn in the red.