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I have a feeling that in the immediate future, climate change will enter insurance calculations. The mechanism is rather straightforward: insurance companies will have to raise rates to compensate themselves for Harvey, Irma and other [future] hurricane season losses. Climate studies provide a justification for the increase, e.g. by pointing out the warming of the Atlantic. In the absence of wind shear, even a relatively small temperature change can arguably make a big difference in hurricane-related property destruction.
Will the government interfere on behalf of the customers? If no, the rates will go up, including the climate change premium. If yes, the public will end up subsidizing the already heavily subsidized catastrophic insurance market. I don't think there will be much appetite for such subsidies. It's probably cheaper to accept, at least unofficially, the climate change, than pay for its denial.
Will the government interfere on behalf of the customers? If no, the rates will go up, including the climate change premium. If yes, the public will end up subsidizing the already heavily subsidized catastrophic insurance market. I don't think there will be much appetite for such subsidies. It's probably cheaper to accept, at least unofficially, the climate change, than pay for its denial.