Climate change is impacting the world on a global scale, and it could make coverage unaffordable in the near future. Here we’ll go over how insurance companies are recalculating their plans to best follow the increased risks.
Companies that didn’t expect the upcoming changes are putting a new price tag on policies to cover the increased damages. With this in mind, let’s look at how we can expect our insurance to change and what we can do about it.
Record-breaking Temperatures and Natural Disasters
Climate models predict increases in the intensity and frequency of natural disasters around the world. Last year alone, hurricanes, flooding, and wildfires have displaced a record 7 million people worldwide. According to the Internal Displacement Monitoring Center (IDMC), they have never seen disasters relocate a large size of the population in the first six months.
If it wasn’t tragedies, it was temperatures. We recorded our most scorching summer last year, and nine out of ten of our hottest summers all occurred after 2005 – and it shows no signs of cooling down any time soon. In 2019, we felt it, and now that we’re battling the wildfires in Australia in 2020, we may continue to experience dangerous temperatures for years to come.
Injuries Associated With Climate Change
The scientific community emphasizes the potential risk to the global economy, ecology, and human health and well-being. According to Diamond and Diamond Lawyers, some of the most common types of personal injury cases that are currently handled in law firms include:
- Injuries caused by animals
- Bicycle accidents
- Brain injuries
- Wrongful death
- Long term disability
- Work-related accidents
- Tailgating accidents
- Hit and runs
- Truck, car and other motor vehicle accidents
- Slip and fall injuries
- Insurance claim disputes
- DUI accidents
- Uninsured motorists
While home and auto insurance may cover personal injuries, natural disasters increase these risks and are often responsible for liability losses, injury, and death. In fact, some natural disasters risks are often overlooked:
- Vector-borne, water-borne or mosquito-borne infections
- Wound infections
- Injuries from falling debris
- Blizzard-related conditions such as frostbite or hypothermia
- Burns, irritation, injured or diseases common with wildfire
Speak with an experienced personal injury attorney to discuss your options if you are injured from a natural disaster. The time limit to file a claim varies by state, so do it as soon as possible. Build a solid case with reports, medical records, and anything else that will work in your favor.
Region-Specific Insurance
What insurance you get and how much you pay in premiums is also determined by your location and the likelihood of you experiencing weather-related damage.
The problem is that climate change is responsible for extreme temperatures and conditions in certain areas. When insurers calculate the increased risk, the costs will go up to compensate for the possibilities.
Big insurers are expanding teams of in-house climatologists and other experts to calculate possible hailstorms, hurricanes, flooding, and wildfires. For example, they can project the pace of melting polar caps. With rising sea levels, it will add another concern for properties on the coast.
If they haven’t already, insurers will seek to mitigate potential losses through risk management. Unfortunately, this will result in higher premiums for policyholders.
However, there is still a call to action. Not only are insurance companies taking extreme weather and climate risk into consideration, but they also reward initiatives for eco-friendly approaches. “Green” insurance that allows policyholders to be ready in the event of a fire or other disaster.
The standards of the sustainability movement include energy conservation benchmarks and the use of renewable construction materials. Having insurers and policyholders work together to prevent or prepare for natural disasters has never been more crucial than now.
Hi there! I’m Sethu, your go-to guy for all things tech, travel, internet, movies, and business tips. I love sharing insights and stories that make life more interesting. Let’s explore the world together, one article at a time!
