Which huge industry increasingly accepts the science behind climate change? Insurers

Being a big business, the insurance industry is a strong backer of free enterprise and its laissez-faire leaders. But a rift could be developing now that some major carriers are staking claims in the climate change cause while many of their congressional backers have remained skeptical of the science.

For insurers, it’s not about the political machinations but rather, it’s about the potential economic losses. If even part of the predictions hold — the ones released by the Intergovernmental Panel On Climate Change that ascribe temperature change to humans with 95 percent certainty — then the rate of extreme weather events will only increase and the effects would be more severe. That, in turn, would lead to greater damages and more payouts.

“The heavy losses caused by weather-related natural catastrophes in the USA showed that greater loss-prevention efforts are needed,” says Munich Re board member Torsen Jeworrek.

feelthelove wrote:The problem is that insurance deals in probability and statistics Ben and the recent floods certainly in the UK are becoming increasingly unpredictable.

There are already talks ongoing for flood insurance to go down the route of Pool Re here which effectively relies on the UK Government as a reinsurer in the event of Terrorism so that once their reserves are exhausted they can meet Policyholder's claims.

In some countries insurer's exclude flood altogether or pay up to a certain limit.  I hope we don't go down that route