Home Insurance Shockwave - Climate Risks Trigger Coverage Cuts As Claims Surge: Report
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Major insurers including Allstate Corp, American Family Insurance, Berkshire Hathaway Inc., Nationwide, and Erie Insurance Group are reportedly reducing or eliminating coverage for extreme weather events due to climate change. This follows Hurricane Idalia, which caused industry-insured losses to onshore property estimated between $2.5 billion to $4 billion, according to Verisk Analytics, Inc. Insurers are excluding protection from weather events such as hurricanes, wind, hail, and wildfires in disaster-prone areas, raising premiums and deductibles.
September 04, 2023 | 4:37 pm
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NEUTRAL IMPACT
Verisk Analytics, Inc. provided the estimated industry-insured losses to onshore property from Hurricane Idalia, which ranged from $2.5 billion to $4 billion.
Verisk Analytics' role in providing estimates of insured losses from Hurricane Idalia demonstrates its importance in the insurance industry. However, this news does not directly impact the company's financial performance.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Allstate Corp is reportedly reducing or eliminating coverage for extreme weather events due to climate change, which may affect its profitability.
Allstate's decision to reduce or eliminate coverage for extreme weather events could lead to a decrease in revenue from premiums. However, it could also reduce the company's exposure to high-cost claims related to these events.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Berkshire Hathaway Inc. is reportedly reducing or eliminating coverage for extreme weather events due to climate change, which may affect its profitability.
Berkshire Hathaway's decision to reduce or eliminate coverage for extreme weather events could lead to a decrease in revenue from premiums. However, it could also reduce the company's exposure to high-cost claims related to these events.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100