Data show how bad the climate insurance fees will become

Look at the evolution of your insurance fees. Yes, climate change is responsible for a steady increase in your insurance charges since the 80s. Mind that all risks of losses due to poor crops, declining fish populations, illness, poor water quality, erosion, floods, droughts, thunders, hurricanes, wildfires, etc and all the uncertainties in the estimation process of risk estimation are deeply affecting insurance costs all around the world, but very particularly and visibly in the fragile American market.

This year, five hurricanes hit the US, causing $500 billion in damage. Floods destroyed mountain towns on the East Coast, and wildfires burned nearly 3 million hectares across the country. As these disasters become more frequent and severe, homeowners are facing higher insurance costs or losing their coverage entirely. For those with insurance, premiums rose 44% between 2011 and 2021. No state saw a decrease over that time.

Fixing old buildings and infrastructure and making new ones stronger will be important for improving insurance markets. The real long-term problem is that we are trying to insure infrastructure that was never made to handle the risks they face now.