Insurance and Climate Change

Table of Contents

 

Introduction to Insurance and Climate Change

1

A Surprisingly Difficult Subject

1

Junk Science or Verifiable Science

3

Spilled Milk

7

Who Should We Believe?

10

Photosynthesis: The Role Plants and Trees Play

12

Volcanic Activity

13

Policy Exclusions

17

Past Climate Changes Before Use of Fossil Fuels

19

Asteroids

21

Government Actions

26

Climate Change Risk Management

29

Insurers Recognize the Risks

29

Multiple Programs Affected

29

Government Insurance Programs Pay Out Higher Losses

34

Insects, Weeds, and Diseases

35

Livestock Insurance

36

Agricultural Business Insurance

36

General Liability Insurance

37

Property Insurance

38

Farm Employee Insurance

40

Over-the-Road Vehicle Insurance

41

Crop/Income Insurance

42

Other Types of Insurance

43

More Heat, Drought and Precipitation to Come to Agriculture (& Insurers)

44

Forests

47

Bioenergy: Plant-Based Material

50

The Future of Forests

51

Water

52

Severe Weather Events

54

Plants and Animals

55

Seasonal Patterns Eventually Equate into Insurance Losses

57

Species Adaptation

58

Health Insurance

59

Air Pollution Increases Health Care Claims

60

Allergens Cause Health Care Issues

61

Temperature Extremes Affect the Life & Health Industry

62

Weather Events Cause Related Deaths and Injuries

62

Heavy Downpours Cause Health Issues

63

Food Security Affects Health, so Affects Insurance

64

Mental Health and Stress-related Disorders

65

The Vulnerable Are Always at the Highest Risk

65

Defining Global Warming and Its Causes

67

Defining the Risk and How Insurers Are Affected

67

Defining Fossil Fuels and their Relationship to Insurers

68

Reinsurance Companies Consider Global Warming Risks

70

If Human Activity is Thought to be Responsible

73

Oil

74

Coal

74

Natural Gas

75

Fracking and the Role Insurance Will Eventually Play

76

Energy Alternatives

82

Looking at Solutions

83

Options Exist

83

Insurance Solutions to Global Warming

85

Global Warming and Wildlife

87

“Supposing” Future Claims Experience

89

Civil Litigation Equates into Liability Claims

92

Measurable Risks Are Required

93

Micro Insurance

94

Reducing Loss Risks Associated with Climate Change

97

Catastrophe Reserve Funds

98

Risk Pools

98

Insurance-Linked Securities

98

Insurers have been Aware of Climate Changes

98

Insurer Incentives to Reduce Use of Fossil Fuels

99

New pipelines

99

Text of the Keep-It-in-the-Ground Act of 2015

100

Many Confusing Opinions and Offered Solutions

104

The Nicholas Stern 2006 Review

107

Global Warming:

Doing Something is Costly

Doing Nothing is Costlier           

107

Insurers Understand the Effects of Automobile Emissions

109

Winners and Losers in Climate Change Issues

111

Climate Change Affects Insurance Companies and Policyholders

114

Risk Knowledge and Management

116

Assessing Risk

121

Insurers Must Act

126

Department of Commerce Estimations

135

NFIP: What is the Message for Taxpayers?

137

Europe Ahead of America in the Reality Category

141

Litigation Risk Due to Both Actions & Inactions Related to Climate Change

143

Physical Risks

147

Transition Risks

147

Liability Risks

147

Driving Factors

147

Insurer Risk is Increasing

148

Insurance Categories

149

Business Interruption Losses

150

Food Safety and Insurance

150

Global Security Also Impacted

151

General Insurance and Liability Affected

151

It is All in the Math

151

Wake-Up Calls to Insurers

152

Insurers Invest Too

152

Dealing with Transition Risks

153

Liability Risks

154

Professional Indemnity

157

Making Assessments

158

As Always, Opinions Vary

159

International Collaboration

161

Developing New Insurance Products

162

Insurance Impacts from Global Warming

162

Life Insurance

162

Health Insurance

163

Insurers Recognized It First (After Scientists that is)

167

Concepts of Insurability

169

The Ethics of Climate Change

171

Climate Change: An Ethical Issue

171

The Poorest of the Poor

172

Predicting and Coping

174

What’s in a Name?

176

Climate Change: A Moral Issue

189

It Starts at the Top

201

Giving the Subject Legitimacy

201

Making Global Warming Personally Relevant

202

Regulatory and Political Risks

203

From a Practical Standpoint

208

Choosing Ethical Conduct

209

Ethics Beyond Philosophers

210

Being Ethically Responsible

211

Responsibility to Others

212

A Legal Liability

214

Free Choice

215

Egoism

217

Objectivist Theory

218

Cultural Ethics; Perceptions of Ethics

220

Moral Persuasion

221

Rationalizing Morals

222

                                                                                   

United Insurance Educators, Inc.

8213 – 352nd Street East

Eatonville, WA  98328

(253) 846-1155