The increasing frequency and severity of natural disasters due to climate change, such as California’s wildfires, are forcing insurance companies to rethink how they assess and price risk. Traditional methods, which rely heavily on historical data, are proving insufficient in a world where climate change is rewriting the rules. In this article we will explain how the insurance industry is adapting to the challenges posed by a rapidly changing climate. 1 Climate Change Brings New Insurance Problems1.1 Unpredictable and Escalating Risks1.2 Rising Claims Payouts1.3 Premium Affordability and Market Pressure1.4 Regulatory Challenges1.5 Reinsurance Volatility1.6 Underinsurance and Non-Insurance1.7 Legal and Reputation Risks1.8 … Continue reading Climate Change Forces Insurance Companies To Adapt More Rapidly