The insurance industry believes climate change is a serious threat to people and property, yet only some companies advocate climate solutions. [New York Times]
If there were one American industry that would be particularly worried about climate change it would have to be insurance, right?
From Hurricane Sandy’s devastating blow to the Northeast to the protracted drought that hit the Midwest Corn Belt, natural catastrophes across the United States pounded insurers last year, generating $35 billion in privately insured property losses, $11 billion more than the average over the last decade.
And the industry expects the situation will get worse. “Numerous studies assume a rise in summer drought periods in North America in the future and an increasing probability of severe cyclones relatively far north along the U.S. East Coast in the long term,” said Peter Höppe, who heads Geo Risks Research at the reinsurance giant Munich Re. “The rise in sea level caused by climate change will further increase the risk of storm surge.” Most insurers, including the reinsurance companies that bear much of the ultimate risk in the industry, have little time for the arguments heard in some right-wing circles that climate change isn’t happening, and are quite comfortable with the scientific consensus that burning fossil fuels is the main culprit of global warming.
Yet when I asked Mr. Nutter what the American insurance industry was doing to combat global warming, his answer was surprising: nothing much. “The industry has really not been engaged in advocacy related to carbon taxes or proposals addressing carbon,” he said. While some big European reinsurers like Munich Re and Swiss Re support efforts to reduce CO2 emissions, “in the United States the household names really have not engaged at all.” Instead, the focus of insurers’ advocacy efforts is zoning rules and disaster mitigation.
Read more: May 15 News: Insurance Industry 'Heavily Dependent On Scientific Thought,' See Rising Climate Costs | ThinkProgress
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