Research Links Climate Change to Soaring US Insurance Premiums
What happened
Research by Andrew John Stevenson shows that home insurance premiums have risen more than 46% since 2021, a rate triple the inflation rate, due to the impact of a changing climate on natural disasters. In two-thirds of U.S. counties, home insurance premiums now cost more than property taxes, while the gap reaches 75% of U.S. counties when including auto insurance against extreme-weather damage. Stevenson estimated the average climate-related premiums are $3,160 annually, compared to $2,423 for property taxes.
From pilotonline.com
Why it matters
The rising cost of insurance is making basic needs, such as housing, less affordable for many Americans. The study notes that insurance costs are a larger financial burden in low-tax, high-disaster areas like the Deep South and the Plains. This trend is part of a larger situation where climate risks are increasing insurance demand across North America.
Climate risks are driving increased insurance demand across North America.
From pilotonline.com
Who's involved
- Andrew John StevensonResearcher who analyzed how climate change is driving up insurance costs
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- ColoradoSpeculative
Could face increased costs for housing and property due to rising insurance premiums.
- MississippiSpeculative
Could face increased costs for housing and property due to rising insurance premiums.
- LouisianaSpeculative
Could face increased costs and exposure to severe weather risk as part of the Deep South.
- OklahomaSpeculative
Could face increased costs for housing and property due to rising insurance premiums.
- AlabamaSpeculative
Could face increased costs for housing and property due to rising insurance premiums.
- Arthur J. Gallagher & Co.Speculative
Could face increased operational costs as severe weather risk and soaring premiums affect the insurance sector.
- Oklahoma CountySpeculative
Could see reduced local government funding if rising insurance costs threaten the property-tax base.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- Rising climate risks may boost demand for risk management services at Arthur J. Gallagher & CoArthur J. Gallagher & Co. may see increased demand for risk management services amid climate crisisLikely
- Climate risks may increase operational costs for Xcel EnergyRising insurance costs may increase operational risk for Xcel EnergyPossible
- Louisiana may face higher insurance costs amid climate risksLouisiana may face significantly higher insurance costs due to climate risks.Possible
- Rising insurance costs may threaten Oklahoma County's property-tax baseRising insurance costs may threaten Oklahoma County's property-tax base and local funding.Possible
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The entities involved
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Andrew John Stevenson
researcher
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California
Italian singer and disc jockey (born 1990)