As climate change reaches a boiling point, why are major insurers exiting disaster-prone regions?
The US insurance industry is facing a perfect storm. Hurricanes and wildfires are intensifying—wreaking havoc on some of the priciest real estate—while the cost of rebuilding continues to climb, and premiums remain locked in by regulation. In response, insurance giants are pulling their property and casualty lines out of high-risk states such as California and Florida.
On a recent episode of Double Take, we asked Robert Gordon, senior vice president of policy, research and international for the American Property Casualty Insurance Association (APCIA), to unpack how insurers reached these decisions, and what would need to happen for them to re-enter these markets.