SNS: The End of Insurance

SNS: The End of Insurance

$9.95

In This Issue
Week of 2/10/2020
Vol. 25 Issue 6

The End of Insurance

  • Delayed Reaction: The State of Insurance
  • Reinsurance: The Canary in the Coal Mine
  • The Changing State of “Cat Bonds”
  • Signs of Coming Trouble for the Insurance Industry
  • Reinventing Insurance
  • About Berit Anderson

The Viral Economy, Part 2
—-

The End of Insurance

How a climate of financial instability is driving unprecedented global losses in the insurance and reinsurance industries

by Berit Anderson

While politicians and lobbyists argue endlessly about whether climate change is human-caused, there is one industry in particular already feeling the financial burden of global climate change: homeowners insurance.

“Despite the manageable impact for insurers, the catastrophic fires highlight that the P&C insurance industry is at the forefront of environmental risk…. The industry is exposed to the economic consequences of climate change, primarily through[its] unpredictable effect … on the frequency and severity of weather-related catastrophic events, such as hurricanes, floods, convective storms, drought, and wildfires.”

– Frank Mirenzi, VP and Senior Credit Officer, Moody’s

Insurance companies around the world suffer direct financial impact whenever a wildfire swoops across Australia or Northern California or a hurricane makes its way up the Eastern Seaboard. And, although most people don’t realize it yet, the numbers at these companies provide perhaps our most accurate real-time indication of the global impacts of climate change. In fact, things have gotten so dire in home insurance that we feel it merits its own discussion as an industry.

SKU: SNS-2020-02-12 - Need Help? Contact Us Leave Feedback

Categories: ,

Tag: