Laurie Moulton-Ulrich’s Post

We’re often asked if we see any impacts from climate change on the local real estate market; in a word, we don’t–coastal North Carolina real estate has never been as highly valued. That said, we do see real climate change impacts surfacing mainly in insurance (and re-insurance) markets with private providers withdrawing and the government insurance market (as the insurer of last resort) expanding. So, if we’re wondering where we’ll see climate change drive impacts relative to real estate, it will come primarily from transferring risk via government insurance. Watch this video to learn more from NC’s Commissioner of Insurance Mike Causey as he outlines an increasingly complex role.

It is so easy to make decisions that privilege the short-term but set us up for long-term costs. It is increasingly difficult to avoid the direct conflict between affordable insurance from our state programs and fiscal soundness. How do we balance incentives for very much needed climate adaptation (which is going to require hard decisions about where we live and how we build) and ensuring everyone has adequate financial protection post-disaster? Two places to start: focusing premium reductions on households most in need, not everyone, and committing to climate-informed building and land use. “Everyone wants affordable insurance, but the costs of risk must be paid by someone," said Carolyn Kousky, a leading property insurance expert and associate vice president at the Environmental Defense Fund. “This is an example of the growing tension we are facing between affordability and fiscal soundness as climate risks increase."

A groundbreaking amendment to a Connecticut state bill on the insurance industry in the US could change how the game works. If it passes, insurers could be forced to pay a fee for any fossil fuel projects they insure in-state. The money raised would go into a public resilience fund to underwrite sea walls and flood protection measures. Insurers prop up the fossil fuel industry and enable expansion by insuring new fossil fuel projects, but insurers are also well aware of the increasing climate-related costs, and have found ways to shift these onto consumers. They are making communities pay by increasing their premiums for home insurance, sometimes to unaffordable levels, or even pulling insurance cover completely from regions they deem too high-risk, leaving families extremely vulnerable and awaiting the next flood or wildfire. If this Connecticut amendment passes, it will be a brilliant example of shifting the cost of the climate crisis away from communities and families at risk of extreme weather events and onto the companies who are fuelling the crisis. #InsureOurFuture

Even as closely as I follow climate reporting, I had not considered the implications for electing state insurance commissioners. How we deal fairly and equitably with the growing financial risks posed by climate change is a complex and costly issue. This is an interesting read.

Is the US on the brink of a homeowners insurance crisis? Will climate change render large parts of the US uninsurable? With top insurers no longer offering it to new customers in certain parts of the country, and many policies being canceled in others, it’s not hyperbole to say something’s brewing. Dive into the causes, regulatory challenges, and likely incoming legislation in this analysis from LexisNexis State Net that features in-depth related materials from LexisNexis Practical Guidance to stay on top of this developing trend: https://bit.ly/46brAiQ #Insurance #ClimateChange #Regulation

🆕 #InsuranceNews from the Insurance Journal ↙️ Insurers’ Climate Losses Almost Match Premiums From Fossil Fuels Top insurance companies suffered $10.6 billion of climate-attributed losses this year, just shy of the $11.3 billion of direct premiums they underwrote for commercial fossil-fuel clients in 2023, according to Insure Our Future. Of the 28 insurers reviewed, more than … #PropertyInsurance #PublicAdjuster #InsuranceAdjuster #PropertyClaims https://vist.ly/3mpiabj

Insurance cost are going to kill affordable housing. This article is a good start to understanding the harm being caused. We now need to understand the loss of units in the past and what could possibly by loss in the NEAR future. Some say “the market will adjust and will work itself out” my question is when did the market “adjust” to help or save low income families. We need federal and state intervention. The government intervened to save car manufacturers and banks, they need to help affordable housing NOW.

https://lnkd.in/gJDhn4Rc keeping in mind that insurance is a recovery mechanism ... rewarding mitigation actions of individual householders by the insurer or some circumstances, the government has to be a better practice...

The end of climate stability signals the end of the #insurance market as we know it. If hazards stop being rare, stop being predictable, or produce damages that aren’t easily reparable, the existing market structures for both property insurance and property more broadly won’t work. Read more from Spencer Glendon and Barney Schauble: https://lnkd.in/eJE2UYAA

Insurance, climate-related risks and the rising cost of living -The global P&C side of the insurance industry has reported a significant boost in premiums, and the growing calls to insure climate-related risk are partly to blame. The resulting jump in insurance costs for policyholders is an issue that lawmakers are taking steps to address. Lawmakers may need to take further actions as extreme weather events are expected to occur with greater intensity. The rise in insurance costs is a problem with knock-on effects across real estate, banking, and other industries. https://lnkd.in/dXh87fMp #climaterisk #climateadaptation #insurance #climatechange #resilience