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Insurance Industry could be Bankrupted

There is a real possibility that insurance companies will either go broke from more catastrophic droughts and storms, or have to so increase their policies that they will put themselves out of business. Either way the future of the industry is not looking good – something their recognize themselves.

$1,500 billion of Australia’s wealth is locked up in homes, commercial buildings, ports and other physical assets. The insurance industry currently underwrites the risk to the bulk of them from weather events. Climate change threatens its ability to continue this in the future.

Therefore the impact from climate change is quickly becoming a social and political issue, as well as an economic one.

The range of large losses is growing. These include infectious diseases such as malaria and Nipah virus, urban heat catastrophes, aeroallergens such as pollen, crop damages from pests, coral bleaching and consequent vulnerability of human settlements to tidal surges, super-infestations of forest pests and elevated wildfire risks.

In the European heat wave of 2003 when temperatures rose six degrees above the norm there were some 35,000 fatalities and uncounted hospitalizations, as well as nuclear power plant shutdowns due to the raised water, massive crop losses, and wildfires. Little of this had been expected. All of this had to be paid for.

The graph shows that over the past 15 years global insured losses from weather-related events have rapidly moved upward. Among the 40 largest during this time, only 3 have NOT been weather related.

Insurers cover less than one third of these losses.
The rest is carried by you and me.

Over the past few years losses have been escalating exponentially

As carbon dioxide levels double large event losses could jump to $200-$30 billion worldwide.

The environment is eclipsing terrorism as the security threat of the 21st century.

YOU can do a great deal to prevent further warming NOW
Personally and Politically

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Every item of information comes from the most recent and reputable scientific sources and published dialogues. As citations would impede the text, and as most may be looked up on the web, we decided not to fill the text with them.

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