what policy changes are insurance companies considering or implementing as a result of climate change?

Question

you simply cannot buy flood insurance anymore in some places that haven't flooded. was your home damaged due to flooding or heavy rain - settling your claim might depend on the distinction?

insurance companies have been paying (and denying) claims forever, but since the occurrences of hurricanes katrina and rita in the states, and historic flooding in britain, they HAVE to be reconsidering their options.

i'm curious to hear how your insurance company has changed your coverage (if at all) due to potentially devastating weather conditions where you live. if you're in the insurance business, all the better: how are you adjusting your practices (if at all) to deal with this 'new' reality?

Answer 1

Fortunately we live high on a hill, if flooding ever reached this level something would be very wrong indeed. We're much higher than the point the water would reach if all the ice and snow on the planet were to melt. The garden's also on a slope which drops away by several feet into a field so even when it's raining really hard all the water quickly runs away.

We're very fortunate in this respect but in other parts of the country not so far from here (Yorkshire in England) there was terrible flooding a few weeks ago which caused a great deal of misery and loss for many, many people.

In the UK at least, insurers have promised not to refuse to insure people who live in areas likely to flood, although inevitably the recent losses will mean substantially higher insurance premiums. The cost in terms of insured losses equates to upwards of $500 for every home in the UK (the final figure will likely be substantially more).

In recent years the cost of weather related insurance claims in the UK has doubled, this is expected to double again in the next 20 years then double again in the next 20 years.

The umbrella organisation for UK insurers - the Association of British Insurers (ABI) - has commissioned a report entitled A Changing Climate For Insurers which looks in details at how climate change has, is and is expected to affect the insurance industry. The full report can be downloaded from here (it's a PDF file) - http://www.abi.org.uk/Display/File/364/SP_Climate_Change5.pdf

Answer 2

The big one is not about individuals as such, but about companies and corporate executives. Some insurance companies are considering a change to their coverage of a company for their liability. If the company is not actively trying to reduce their contribution to global warming, the insurance company might not cover liability they incur as a result of global warming.

It could be considered an intentional act to refuse to take steps against global warming, and a company is usually on their own as far as liability for those is concerned.

More here:

http://www.csmonitor.com/2006/1013/p01s01-usec.html

and:

"With all the talk of potential shareholder lawsuits against industrial emitters of so-called greenhouse gases, Zurich-based insurance powerhouse Swiss Re is considering denying coverage, starting with directors-and-officers liability policies, to companies it decides aren't doing enough to reduce their output of the gases."

http://greenyes.grrn.org/2003/05/msg00102.html