Insurance, Politics & Climate Change
Table of Contents
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Chapter 1: Introduction to Insurance, Politics & Climate Change |
1 |
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Is Climate Change Real? |
2 |
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Insurers See the Writing on the Wall; People Just See the Wall |
2 |
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Dude! This is About Weather! |
3 |
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A Surprisingly Difficult Topic Even for Insurers |
5 |
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Time Matters |
6 |
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A Complicated Insurance Topic |
6 |
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Insurers Look at Financial Risks, Not Politics |
9 |
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Facts are Verified; Insurance Companies Weigh In |
10 |
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Insurers Possess Knowledge |
11 |
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Outcome #1 & #2 |
12 |
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A Constant Attempt to Muddy the Information Waters |
13 |
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Insurers Pick Up the Claims, and Raise Premiums |
14 |
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Insurers Assess Global Change Risks |
15 |
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Insurance Claim Tails |
17 |
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NAIC Looks at Economic Threats to Insurer Stability |
18 |
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Chapter 2: Spilled Milk |
21 |
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From an Insurance Perspective |
23 |
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Flood Risk and the NFIP |
25 |
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Other NFIP Issues |
26 |
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H.R. 5381 |
28 |
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Climate Change: A Financial Issue for Insurers |
29 |
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Violent Conflicts |
29 |
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Climate Change or Simply Bad Luck? |
30 |
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A Difficult Concept for Some People |
30 |
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Change and the Unknown Can be Frightening |
30 |
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Lack of Understanding Affects Acquired Knowledge |
31 |
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Financial Gains Affects Climate Change Statements |
31 |
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Inability or Unwillingness to Perform Personal Analysis |
32 |
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Financial Gains Determine Opinions |
33 |
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Moving Forward |
33 |
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Identifying the Skeptics |
34 |
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How Can Insurers Meet the Climate Challenge? |
35 |
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Today’s Political Atmosphere Molds the Actions of Insurers |
37 |
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Insurers must deal with a Political Climate |
41 |
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Distributional Politics Affect Insurance |
43 |
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A Tough Situation for Insurers |
43 |
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Insurance Statistics |
45 |
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Climate Mitigation Affects Insurance Producers |
45 |
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Canada |
47 |
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Insurer Assessments of the Future |
47 |
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Believe the Insurers, Not the Politicians |
49 |
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Adding Billions of People Make this Climate Change Different |
50 |
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Photosynthesis: The Role Plants and Trees Play |
53 |
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Insuring Volcanic Activity |
55 |
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Hawaii, Alaska |
57 |
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Pacific Coast, Wyoming and the Rockies, Volcanoes in General |
58 |
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Unusual Events Can Affect Insurance Policies |
59 |
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Policy Exclusions |
60 |
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Past Climate Change Before Use of Fossil Fuels |
61 |
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Asteroids |
64 |
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Insurance & Government Actions Related to Climate Change |
69 |
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Chapter 3: Climate Change Risk Management |
74 |
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Insures Recognize the Risk |
74 |
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Crop Loss Equates to Insurance Payments |
76 |
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Insurance Premiums Impact Food Pricing |
79 |
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Government Insurance Programs Pay Out Higher Losses |
84 |
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Insects, Weeds & Diseases |
85 |
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Livestock Insurance |
86 |
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Agricultural Business Insurance |
87 |
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General Liability Insurance |
88 |
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Property Insurance |
89 |
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ACV, RCV, FRC |
89 |
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Farm Employee Insurance |
91 |
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Over-the-Road Vehicle Insurance |
92 |
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Crop/Income Insurance |
93 |
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Other Types of Insurance |
93 |
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More Heat, Drought & Precipitation to Come to Agriculture & Insurers |
94 |
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Forests |
97 |
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Bioenergy: Plant-Based Material |
101 |
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The Future of Forests |
102 |
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Chapter 4: Our Planet’s Future |
104 |
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Water |
104 |
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Like Insurance, Ecosystems Buffer Severe Weather Events |
106 |
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Plants and Animals |
106 |
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Seasonal Patterns Eventually Equate into Insurance Losses |
109 |
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Adaption Required in Insurance as well as Species |
110 |
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Health Insurance |
112 |
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Air Pollution Increases Health Care Claims |
112 |
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Allergens Cause Health Care Issues |
113 |
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Temperature Extremes Affect the Life & Health Insurance Industry Too |
114 |
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Weather Events Cause-Related Deaths & Injuries (So More Claims) |
115 |
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Even Heavy Downpours Cause Health Issues |
116 |
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Food Security Affects Health, so it also Affects Insurance |
117 |
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Mental Health & Stress-related Disorders |
117 |
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Vulnerable Individuals Present the Highest Health Insurer Risk |
118 |
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Defining the Risks & How Insurers Respond |
120 |
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Defining Fossil Fuels & their Relationship to Insurer Risk |
121 |
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Reinsurance Companies Consider Global Warming Risks |
122 |
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Insurers Do Not Care Whether Climate Change is Human Caused |
123 |
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Oil |
124 |
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Coal |
125 |
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Natural Gas |
125 |
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Environmental Impairment Liability Insurance (EIL) |
127 |
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Earthquake Claims That Appear to be Caused by Fracking |
127 |
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Energy Alternatives |
133 |
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Insurers and Others Consider Solutions |
133 |
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Options Exist |
134 |
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Insurance Solutions to Global Warming |
136 |
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Global Warming and Wildlife & Livestock |
138 |
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Estimating Future Claims Experience |
140 |
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Civil Litigation Equates to Liability Claims |
142 |
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Measurable Risks Are Required by Insurers |
143 |
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Micro Insurance |
144 |
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Reducing Insurance Loss Risks Associated with Climate Change |
148 |
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Catastrophe Reserve Funds |
149 |
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Risk Pools |
149 |
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Insurance-Linked Securities |
149 |
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Insurers have been Aware of Climate Change for Years |
149 |
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Insurer Incentives to Reduce Use of Fossil Fuels |
149 |
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New Pipelines |
150 |
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Many Confusing Opinions & Offered Solutions |
150 |
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The Nicholas Stern 2006 Review |
154 |
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Insurers Understand the Effects of Automobile Emissions |
155 |
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How People Live Has Always Changed Over Time (Insurance Needs Change too) |
160 |
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Winners & Losers in Climate Change Issues, Including Insurance Availability |
163 |
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Why People Must Believe the Insurers |
164 |
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Chapter 5: Climate Change Affects Insurance Companies & Policyholders |
168 |
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The Lawsuits Continue to Rise in Numbers |
168 |
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Examples of Severe Weather Events in 2021 |
169 |
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It Is Still Just Weather!? |
171 |
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Fact #1-#5 |
171 |
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Fact #6-#12 |
172 |
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Federal Policies on Climate Change Between 2017and 2020 |
173 |
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An Ever-Growing Wave of Lawsuits Helps the Insurance Industry |
175 |
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Will Litigation be the Savior of the Insurance Industry? |
178 |
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Wind Insurance in Wind Pool Areas |
180 |
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What Defines a Windstorm? |
180 |
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Windstorm Insurance Deductibles in Florida |
181 |
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Insurer Risk-Knowledge & Management |
182 |
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Assessing Risk & Avoiding Losses |
187 |
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Life & Health Insurance Will be Affected |
193 |
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Changing Landscape Affects Health Issues & Health Insurance |
194 |
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Chapter 6: Insurers Have Limited Abilities |
196 |
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Persuasion Through Premium Rates |
196 |
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Insurance penetration rates |
198 |
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Department of Commerce Estimations |
205 |
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NFIP: What is the Message for Taxpayers? |
207 |
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National Flood Insurance Program (NFIP) |
210 |
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1. Premium Increases & Surcharges |
210 |
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Pre-FIRM Subsidized Policies |
211 |
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Other Subsidized Policies |
211 |
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V Zones |
212 |
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A Zones |
212 |
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X Zones |
212 |
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Miscellaneous |
212 |
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Changes to Become Effective 1/1/19 |
212 |
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2. Policy Reformation for Use of Incorrect Standard Flood Ins Policy Form |
213 |
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3. Premium Receipt Date for Guidance for Invalid Payments |
213 |
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4. Primary Residence Determination |
213 |
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5. Clarification of Increased Cost of Compliance Premium |
214 |
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6. HFIAA Section 28, Clean Communication of Risk – Phase 2 Re-underwriting |
214 |
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7. Datum Conversion |
214 |
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8. Updated Claims Data Elements |
215 |
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NFIP Risk Rating 2.0 |
215 |
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What is not Changing |
216 |
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Premium Rates under Risk Rating 2.0 |
217 |
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Phase I and Phase II |
218 |
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General Property Form / Standard Flood Insurance Policy |
220 |
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Europe Ahead of America in the Reality Category |
248 |
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Litigation Risk Due to Both Actions & Inactions Related to Climate Change |
250 |
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Physical Risks |
254 |
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Transition Risks |
254 |
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Liability Risks |
254 |
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Driving Factors |
254 |
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Insurer Risk is Increasing |
256 |
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Insurance Categories |
257 |
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Business Interruption Insurance and Resulting Claims |
258 |
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Food Safety & Insurance |
258 |
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Global Security Also Impacted |
259 |
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General Insurance & Liability Affected |
259 |
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It is All in the Math |
260 |
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Insurance Company Wake-Up Calls |
260 |
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Insurers Invest Too |
261 |
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Dealing with Transition Risks |
261 |
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Liability Risks |
262 |
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Professional Indemnity |
265 |
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Making Assessments |
266 |
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As Always, Opinions Vary |
267 |
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Tipping Events |
271 |
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International Collaborations & Finance: Premium Rise as Claims Rise |
271 |
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Developing New Insurance Products |
272 |
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Insurance Impacts from Global Warming |
273 |
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Life Insurance |
273 |
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Health Insurance |
273 |
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Insurers Recognized It First (Along with Scientists of course) |
278 |
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Concepts of Insurability |
279 |
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Chapter 7: The Ethics of Climate Change |
282 |
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Climate Change: An Ethical Issue |
282 |
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The Poorest of the Poor |
283 |
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Predicting & Coping |
285 |
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New Technology & the Hope that it Will Heal |
285 |
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Power |
287 |
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Transport Technology |
287 |
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Funding from an Ethical Obligation |
287 |
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What’s in a Name? |
289 |
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Three primary issues that relate to climate change |
289 |
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IPPC report identified the ethical considerations |
295 |
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Climate Change: A Moral Issue |
301 |
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Aerosol Pollution |
303 |
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In insurance Uncertainty is a technical term. |
307 |
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Adaption where possible |
309 |
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Change Starts at the Top |
312 |
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Giving the Subject Legitimacy |
312 |
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Making Global Warming Personally Relevant |
313 |
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Making Ethical Choices for our World |
313 |
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Regulatory & Political Risks |
314 |
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From a Practical Standpoint |
319 |
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Choosing Ethical Conduct |
320 |
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Ethics Beyond Philosophers |
321 |
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Being Ethically Responsible is Hard Work |
322 |
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Responsibility to Others |
323 |
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A Legal Liability |
325 |
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Free Choice |
327 |
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Egoism |
329 |
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Objectivist Theory |
330 |
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Example # 1 & #2 |
330 |
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Ethical Conduct Varies |
331 |
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Moral Persuasion |
332 |
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Rationalizing Morals |
333 |
United Insurance Educators, Inc.
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