It’s about time we start seeing some of these articles. What are the costs of climate change and who will pay for climate change, thank you to the New Republic for bringing this up.
“Insurers and financial corporations are pushing for new laws and policies to fight climate change before it hits their bottom lines. It might not be altruism, but it just might work. – These days, the greatest unpredictable risk Munich Re faces is climate change. Like other major insurers, Munich Re follows a standard procedure to ensure its premiums are set high enough to cover natural-catastrophe claims. Much of this work relies on what the company calls “event sets”—databases of past claims for a given type of loss in a given area. The company plots information from the event sets on a graph to form “loss-return curves,” which are used to make informed projections for the future. Assuming the curves are accurate—that future losses occur at a rate and intensity broadly consistent with past losses—all is well. Revenue from the premiums outpaces the costs of claims, corporate income rises, and investors bid up the stock. This is as it has ever been: Floods are few; insurance policies are many.”
We gave the link above so that you guys could read the full story.