Insurance, Politics & Climate Change

Part 1


Table of Contents


Chapter 1: Introduction to Insurance, Politics & Climate Change

1

Is Climate Change Real?

2

Insurers See the Writing on the Wall; People Just See the Wall

2

Dude! This is About Weather!

3

A Surprisingly Difficult Topic

5

A Complicated Insurance Topic

7

Insurers Look at Financial Risks, Not Politics

9

Facts are Verified; Insurance Companies Weigh In

11

A Constant Attempt to Muddy the Information Waters

13

Insurers Pick Up the Claims, and Raise Premiums

15

Insurers Assess Global Change Risks

16

Claim Tails

17

NAIC Looks at Economic Threats to Insurer Stability

19

Chapter 2: Spilled Milk

22

From an Insurance Perspective

24

Flood Risk and the NFIP

26

Other NFIP Issues

27

H.R. 5381

28

Climate Change: A Financial Issue for Insurers

29

Violent Conflicts

30

Climate Change or Simply Bad Luck?

30

A Difficult Concept for Some People

31

Change and the Unknown Can be Frightening

31

Lack of Understanding Affects Acquired Knowledge

31

Financial Gains Affects Climate Change Statements

32

Inability or Unwillingness to Perform Personal Analysis

32

Financial Gains Determine Opinions

33

Moving Forward

33

Identifying the Skeptics

34

How Can Insurers Meet the Climate Challenge?

36

Today’s Political Atmosphere Molds the Actions of Insurers

37

Insurers must deal with a Political Climate

41

Distributional Politics Affect Insurance

44

A Tough Situation for Insurers

44

Insurance Statistics

45

Climate Mitigation is Broader than Most People Realize

46

Canada

46

Believe the Insurers, Not the Politicians

48

Adding Billions of People Make this Climate Change Different

49

Photosynthesis: The Role Plants and Trees Play

52

Insuring Volcanic Activity

54

Hawaii, Alaska, Pacific Coast

56

Wyoming and the Rockies, Volcanoes in General

57

Unusual Events Can Affect Insurance Policies

57


United Insurance Educators, Inc.

Insurance, Politics & Climate Change

Part 1


Policy Exclusions

58

Past Climate Change Before Use of Fossil Fuels

60

Asteroids

62

Insurance & Government Actions Related to Climate Change

67

Pew Research Center surveys

70

Chapter 3: Climate Change Risk Management

72

Insures Recognize the Risk

72

Crop Loss Equates into Insurance Payments

74

Insurance Premiums Impact Food Pricing

77

Government Insurance Programs Pay Out Higher Losses

82

Insects, Weeds & Diseases

84

Livestock Insurance

85

Agricultural Business Insurance

85

General Liability Insurance

86

Property Insurance

87

RCV, ACV, FRC

88

Farm Employee Insurance

89

Over-the-Road Vehicle Insurance

90

Crop/Income Insurance

91

Other Types of Insurance

92

More Heat, Drought & Precipitation to Come to Agriculture & Insurers

93

Consequences on food security in U.S. and Canada

95

Forests

96

Bioenergy: Plant-Based Material

99

The Future of Forests

100

Chapter 4: Our Planet’s Future

103

Water

103

Like Insurance, Ecosystems Buffer Severe Weather Events

105

Plants and Animals

105

NOAA

107

Seasonal Patterns Eventually Equate into Insurance Losses

108

Adaption in Insurance as well as Species

109

Health Insurance

110

Air Pollution Increases Health Care Claims

111

Allergens Cause Health Care Issues

112

Temperature Extremes Affect the Life & Health Insurance Industry Too

113

Weather Events Cause Related Deaths & Injuries (So More Claims)

114

Heavy Downpours Cause Health Issues

115

Food Security Affects Health, so Affects Insurance

116

Mental Health & Stress-related Disorders

116

Vulnerable Individuals Face the Highest Risk

117

Defining the Risks & How Insurers Respond

119

Defining Fossil Fuels & their Relationship to Insurers

120

Reinsurance Companies Consider Global Warming Risks

124

So What if Humans Activity is Responsible?

125

Oil

126

Coal

127

United Insurance Educators, Inc.

Insurance, Politics & Climate Change

Part 1


Natural Gas

127

Environmental Impairment Liability Insurance (EIL)

129

Specialty Policies

133

Upstream Emissions

134

Energy Alternatives

135

Looking at Solutions

135

Options Exist

136

Insurance Solutions to Global Warming

137

Loss Predictability

138

Global Warming & Wildlife

140

“Supposing” Future Claims Experience

142

Civil Litigation Equates into Liability Claims

144

Measurable Risks Are Required

145

Micro Insurance

146

Disertification

147

Often referred to as community-based financing

149

Reducing Loss Risks Associated with Climate Change

150

Catastrophe Reserve Funds

150

Risk Pools

151

Insurance-Linked Securities

151

Insurers have been Aware of Climate Change

151

Insurer Incentives to Reduce Us of Fossil Fuels

151

New Pipelines

152

Many Confusing Opinions & Offered Solutions

152

Intergovernmental Panel on Climate Change report

153

The Nicholas Stern 2006 Review

155

Insurers Understand the Effects of Automobile Emissions

157

How People Live Has Always Changed with Time

162

Winners & Losers in Climate Change Issues

165

Why We Must Believe in Insurers

166


United Insurance Educators, Inc.

8213 – 352nd Street East Eatonville, WA 98328

(253) 846-1155


United Insurance Educators, Inc.