As the nation braces for an active hurricane season, private insurers jump ship....

[marmar]

from ScientificAmerican.com:


Insurers Claim Global Warming Makes Some Regions Too Hot to Handle
As the nation braces for an active hurricane season, private insurers jump ship, leaving federal and state governments liable for ever increasing payouts
By Victoria Schlesinger and Meredith Knight



In the wake of skyrocketing insurance claims due to natural disasters—hurricanes, wildfires, droughts, blizzards and the like—insurers have been imposing steep rate hikes and, in some cases, fleeing high-risk areas, leaving consumers out in the cold. It's gotten so out of hand, consumer advocates say, that insurers now are even crying climate change as a factor in raising premiums or dumping clients.

As the crisis mounts, hard hit states such as Florida and Louisiana are increasingly stepping up as insurance companies check out, providing coverage for residents dropped by their insurers. And signs are things will get worse before they get better: The National Oceanic and Atmospheric Administration (NOAA) is predicting that this year's hurricane season—which officially began June 1—will be "very active," with three to five major hurricanes in the Atlantic.

Weather-related insurance losses rose to $50 billion in 2005 from less than $10 billion a decade earlier, according to a study by Ceres, a Boston-based nonprofit group that lobbies corporations to be environmentally responsible. The bulk of these losses can be attributed to sprawl in regions prone to catastrophe—the total area of coastal development in Florida has increased over 30 percent since 1990.

A Warmer Earth, and Fewer Insured

Private insurers also point fingers at a changing climate, citing a report issued by the Intergovernmental Panel on Climate Change (IPCC) earlier this year that concluded global warming is to blame for a doubling over the past five years of natural disasters—and that the situation will worsen if nothing is done to stop it. (The often-touted link between climate change and increased hurricane strength, however, has yet to be firmly established.)

"If circumstances change due to global warming that alter the level of risk, insurance companies need to be free to reflect that risk," says David Snyder, vice president and assistant general counsel for the American Insurance Association (AIA). "The reality is that in some places the risk is so severe that are uninsurable." ......(more)

The complete piece is at: http://www.sciam.com/article.cfm?chanID=sa004&articleID=DFD4AF1F-E7F2-99DF-3D55D40569285929

[ixion]

1. at this point, it's not really acting like a typical active season...

We've had a few showers, but not even one tropical storm as of yet.

[soothsayer]

5. thankfully it seems quiet like last year. of course florida needs the rain, so

it's a double-edged sword if weather control is doing this.

[FLSurfer]

2. I realize I'm making a few assumptions here

But the insurance industry seem to be very Republican, in their actions.
Most republicans deny the science behind Global Climate Change.

Now we have to pay higher insurance fees because of global warming?

I have to sit down, my head is spinning.

[BlueManDude]

3. Insurers love to collect those premiums - not so crazy about making good on claims.

[sarcasmo]

4. Insurance companies are in the money making business.

They have realized that there is no money to be maid in hurricane alley.