climate change impact on insurance

Climate change increases the frequency and severity of extreme weather events like hurricanes, floods, and wildfires. This leads to higher insurance claims, raising costs for insurers. As a result, insurance premiums may increase for individuals and businesses, or coverage may become more difficult to obtain. Insurers are also more cautious about offering coverage in high-risk areas, which can impact property values and economic stability. Overall, climate change challenges the insurance industry’s ability to predict, price, and manage risks, prompting adaptations to protect financial stability and inform risk assessments.