The world of business and finance is starting to put a price on climate change.
And insurance companies are no exception. Some insurers are racing to put a value on the future of a warming planet. Analysts argue the effects of climate change can be seen everywhere, from rising sea levels, agriculture, flooding, hurricanes to increased wildfire risks. And while climate change may be gradual, one natural catastrophe can have a significant impact on the industry.
Now, insurance companies are working on building models that aim to better estimate the impact. More insurers are trying to calculate premiums taking into consideration those risks. These companies are attempting to incorporate estimates into their calculations and charge customers accordingly. We discuss how climate change is impacting the insurance industry and customers particularly in California.