Global Warming: Should Insurance Companies Worry?
According to a report by the U.S. Government Accountability Office, rising temperatures over the next several decades are expected to increase the frequency and severity of floods, hurricanes, droughts and other catastrophic weather events. As a result, the GAO says, federal and private insurers can expect to pay more and bigger claims for weather-related damage.
The increased risk of losses for private insurance companies are almost certain to lead to higher premiums for ratepayers and restricted coverage for wider range of weather events and natural disasters. For federal insurers, which are focused on extending services to more people instead of earning a profit, the likelihood of more expensive claims could result in higher taxes or fewer services in other areas as revenue is shifted to cover those weather-related damages.
For more details, read the GAO report, Financial Risks to Federal and Private Insurers in Coming Decades [pdf], or check out the coverage offered by Robert Longley, About.com’s Guide to U.S. Government Information & Resources.
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Comments
Well said.
If the govt is pushing it, you know it’s probably wrong. One problem with the reasoning is that evidence shows that it’s cooling, not warming, that increases floods and droughts. Hurricanes are fueled by the differences in water vs air temps, and that seems to be getting better compared to the first half of the 20th century, when it was warmer than it has been the last 20 yrs.