Americans across the country will begin to feel the effects of global warming in their wallets in the months to come. The National Association of Insurance Commissioners (NAIC) recently conducted a study with 88 of the nation’s largest insurance providers in order to discover to what extent the companies use potential climate shifts in their risk analysis models. Out of the 88 companies surveyed only 11 included the potential effects of climate change into their models. With hurricane season only halfway completed and almost five months left in this calendar year, the country has already accumulated over $35 billion dollars in damages due to weather disasters. This staggering statistic implies a couple of possible implications for future actions by insurance provides. Insurance providers will begin to include potential climate shifts into their risk analysis models. If they choose to do this insurance rates for related weather disasters will increase across the country, and will skyrocket in areas such as the gulf. Insurance providers also have the option of not doing anything. This option could possibly lead to insurance companies defaulting on their contracts with clients. Either way, many Americans will see the effects of climate change in the near future.
Link to NAIC Report: http://www.ceres.org/resources/reports/naic-climate-disclosure
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