Accelerating climate change consequences are driving an avalanche of insurance cancelations or denials for existing and new homes, businesses, mortgages, and crop failure. In part, because of the new definitions of high-risk climate change areas.
This article contains information about:
1. Why more and more insurance and reinsurance companies on every continent are canceling their climate change-exposed policies or denying new climate policy risks as quickly as possible?
2. Why the avalanche of global climate change-related insurance cancelations and denials might become the perfect incentive and a stunning wake-up call for climate deniers and those who do not yet understand the climate change emergency. (These accelerating insurance cancelations and denials could create far more angry climate educators and activists who will demand their governments fix this nightmare before they suffer even more.)
3. What most people do not know about our highly censored climate change consequence-driven future. This is the very critical climate information that the better-run insurance company risk analysis teams have paid handsomely to acquire and are using for evaluating your current and future insurance policies.
The illustration below shows a small fraction of the intensifying primary and secondary consequences insurance and reinsurance companies are very concerned about in their portfolios.
Insurance and reinsurance companies will not publicly promote this, but rapidly accelerating climate change consequences have forced them to reevaluate ALL current policies where climate change consequences could bring them severe or continual losses.
The old and long-used 100-year record standard that insurers commonly used for evaluating and rating weather extremes risks like heatwaves, droughts, wildfires, hurricanes, tornados, cyclones, rain bombs, sea level rise, flooding or erosion, wind storms [Derechos], dust storms, wildfire smoke events, unseasonable cold spells, and other abnormal unseasonal weather is no longer relevant in today's rapidly escalating global climate change emergency!
Insurance companies have repeatedly witnessed (and are tired of paying for) 100-year extreme weather now occurring every 3-5 years or less.
In addition to paying for many more climate-related losses, it did not take long for the world's insurance companies to also notice that the records for extreme weather of all kinds were not broken by very small amounts as in the past. It has now become clear to them that new records for extreme weather of all kinds are happening by larger and larger percentages. As a result of this and several other factors below, the world's best insurance companies are scrambling to reevaluate and recalculate their policy portfolios and acceptance policies.
They are also beginning to use uncensored climate change consequence predictions and timeframes from private sector climate risk analysis firms and not the grossly underestimated public data summary reports of the governments or the UN's Intergovernmental Panel on Climate Change (IPCC). Insurance companies are now also developing and using new 1,000-year record standards for heatwaves, rain, drought, winds, flooding wildfires, and all other kinds of extreme and unseasonable weather, which, unfortunately, will become the new normal in the future.
Insurance companies are now forced to use 1,000-year record standards for extreme weather risks because climate change has worsened so much that the old hundred-year standards are entirely inadequate for determining current risk levels. Additionally, because of accelerating climate change, 100-year extreme weather record events are occurring as often as every 3 to 5 years instead of about once every hundred years. Some climate scientists predict that even the new 1,000-year insurance standards will soon be obsolete because we will soon be facing climate change-driven consequences and conditions that have not occurred for hundreds of thousands of years.
The better-run worldwide insurance companies' most competent climate risk analysts now also know that the severity, frequency, and size of areas affected by climate change consequences will increase radically between 2025 and 2031. Moreover, they also know that after 2031, if our governments fail to act effectively before 2025, the severity, frequency, and size of areas affected by intensifying climate change consequences will increase exponentially!
They know conclusively that the climate change emergency has forced the world into the new 1,000-year extreme weather standard and that we will not return to the old 100-year standard for a very long time --- if ever.
Because of the aforementioned, the world's insurance companies are rapidly canceling or denying high-risk climate change-related policies. They are also doing so because of many climate research studies that have predicted hundreds of trillions of dollars in climate consequence-related losses worldwide. For example, climate change consequences were predicted in 2008 in the Stern Report to cost nations from 5% to eventually up to 20% of their total national gross domestic product (GDP).
As climate change consequences become more frequent, severe, and cover larger areas, the percentage of the total GDP that climate change will cost each nation is eventually expected to rise beyond even the 20% of GDP estimates.
The better insurance companies also have significantly discounted the grossly underestimated climate change summaries by the Intergovernmental Panel on Climate Change (IPCC).
The wiser insurance companies will no longer expose themselves or make themselves responsible for the out-of-control escalating climate risks. They do this because they know with a high-level certainty that unmanaged climate losses will bankrupt them not very far off in the future unless, they get out of insuring climate change risks fast!
Insurance companies are quickly, quietly, and discretely getting out of the climate change insurance business using different tactics:
1. They have stopped accepting new policies for many areas in the 1,000-year climate change consequence high-risk danger zones.
2. On renewal, many insurance companies are already adding new climate change consequence-related total exemption clauses to their existing home, business, mortgage, and crop failure policies. These new climate change consequence-related exemptions specifically deny all climate change-related damages related to ALL extreme weather events, such as heatwaves, droughts, wildfires, hurricanes, tornados, cyclones, rain bombs, sea level rise, flooding or erosion, wind storms [Derechos], dust storms, wildfire smoke events, unseasonable cold spells, and other abnormal unseasonal weather. ( If you want to see a list of the primary and secondary consequences of climate change that the world's insurance companies are doing their best to eliminate from their portfolios as fast as possible, click here.)
There are several ways insurance companies are considering writing these climate change exemptions:
a. any unexpected extreme weather event is exempted from coverage that has not occurred over the last 100 years.
b. any extreme weather event is excluded from coverage that breaks the previous 100-year event record by 3-5% or more.
3. They are setting new or renewal policy rates so high that no typical homeowner, business owner, or home buyer farmer could ever afford them.
4. Insurance companies know about are preparing for the Thwaits doomsday glacier collapse. If it collapses soon, it will rapidly raise sea levels by 2 to 3 feet worldwide. They know Thwaites will suddenly destroy millions of coastal homes and businesses.
Some collapse estimates say Thwaites could collapse in the next 3 to 5 years; others say it may take a few decades. Insurance companies know that if they insure any coastal properties at the time of the Thwaites collapse for flooding or sea level risks, this would mean immediate bankruptcy for even the world's strongest insurance firms. (Click here to learn more about the Thwaits doomsday glacier and why insurance companies are rushing to cancel out or exclude new coverages for their vulnerable coastal policies.)
The result of more insurance companies declining more high-risk climate change-affected coverages, adding climate change consequence no coverage causes, or astronomically raising rates will be many more homes, businesses, and farms suddenly losing most or all of their value or, becoming unsellable because they could not be insured.
There are also some fascinating unintended side effects of accelerating insurance company cancellations and denials better covered further below.
Insurance companies know they will go bankrupt if they continue to try to cover the ever-growing costs of accelerating climate change consequences. So, quietly and rapidly, they are moving away from high-risk climate change areas and invisibly transferring those predicted, continually increasing climate change losses onto city, state, and national governments.
Insurance companies are particularly concerned about the inevitable growing osts of Managed Climate Retreat also falling upon them and not the government as climate change worsens. Managed Climate Retreat is the practice of governments purchasing homes and businesses in high-risk climate change areas at fair market value and relocating them to other safer areas.
Suppose the insurance and reinsurance companies don't quickly get out of insuring their accelerating climate change risks. In that case, the more thoughtful individual homeowners, businesses, and farmers will be taking the big payouts from their climate-covered policies after the next major climate catastrophe and relocating themselves using those payouts instead of using the government's money for their managed climate retreat.
Insurance and reinsurance companies adamantly do not want to get caught paying for all of the "Managed Climate Retreat" costs that our governments should righteously be paying.
There are other reasons besides maintaining profitability and fear of bankruptcy for why the world's insurance companies are dropping climate-related coverages
1. The insurance and reinsurance companies are not so dumb as to put themselves on the bankruptcy hook for the ongoing and accelerating damages that fossil fuel industry pollution is causing to the world's climate stability.
2. Insurance companies also do not want to be the financial "fall back guys" for the government's 60 years of failed and inadequate action to manage the climate change emergency when needed fossil fuel reductions could've been easy and gradual.
3. Insurance companies are already witnessing a growing number of worldwide insurance companies that took on too many climate change-related risks have gone bankrupt or are on the brink of bankruptcy. Dumping their climate change-related coverages is no longer some untested theory.
It has real-world proof. In many areas (like Florida in the US), state and national governments have had to create state or federal government-run insurance companies because no other insurers would take on policies in their climate change high-risk local areas.
There are also side effects of the world's insurance and reinsurance companies getting out of accelerating climate change risks
1. Individuals and businesses will start to go after their state and national governments to pay for their climate-related damages once their home business or crop insurance has been canceled because of the rising risk of climate change.
2. Individuals and businesses will start to go after the fossil fuel industry to pay for their climate-related damages once their home business or crop insurance has been canceled because of the rising risk of climate change.
3. Hedge funds, investment bankers, and the other one percent of the world's wealthiest individuals have begun to cash in by getting all their 1,000-year high-risk climate change properties off their books. They then purchase lower-risk properties in the limited areas around the world that will have lower climate change consequences. Their expensive risk management firms also know what the insurance companies know and what our governments and the intergovernmental panel on climate change IPCC are not telling the general public.
4. To make matters worse and as a bold slap in the face to climate justice and racial justice, it will be the black, brown, and yellow races living between the 35th parallel north and the 35th parallel south who will suffer the most climate change-related losses and casualties. The injustice lies in that the primarily white races in the northern developed countries have by far created the vast majority of the atmospheric greenhouse gas pollution from fossil fuel burning. This injustice has caused this global climate nightmare to punish those who had little or nothing to do with creating it.
5. Farmers worldwide may be the biggest losers in the accelerating insurance cancellation debacle. The following climate change-driven extreme weather events such as heatwaves, heat domes, droughts, wildfires, hurricanes, tornados, cyclones, rain bombs, sea level rise, flooding or erosion, wind storms [Derechos], dust storms, wildfire smoke events, unseasonable cold spells, and other abnormal unseasonal weather will be increasing in severity, frequency, and size of areas covered. What farm crop insurer will want to continue high-risk coverages with the above climate change consequences, increasing radically between 2025 and 2031 and increasing exponentially after 2031?
Ultimately, it is the general public and average citizens of the nations of the world who will suffer the most significant financial losses and will be the least prepared. This is because they are being kept ignorant about how bad climate change and the global warming extinction emergency is and how soon it is arriving.
Why this accelerating avalanche of worldwide insurance and reinsurance climate change-related cancelations and denials may be a powerful incentive and wake-up call for both climate deniers and individuals neutral to understanding the climate emergency.
1. As worldwide insurance cancelations and denials become more publicly known, it may do more to get people not currently involved in climate change action "mad as hell" and paying more attention to the dangers of the climate change emergency.
2. As insurance cancelations and denials rise, it might even get more people in the streets protesting about how climate change has financially harmed them. And best of all,
3. Insurance companies quietly and methodically canceling and denying more home, business, mortgage, and crop failure insurance may become one of the major forces that get people so angry they finally force their politicians and governments to act to fix our escalating climate change nightmare.
Here is what most people do not know about our scary climate change future and what risk analysis teams in the better insurance companies have paid handsomely to learn.
If you want to know what the world's wealthiest individuals, the most significant intelligence agencies, and the best-run insurance companies pay specialty climate change risk analysis firms for, review the following links. Please note that this information is not the grossly underestimated climate change summary reports by the UN's IPCC.
The following is also not the "don't worry the public" climate information many governments and the media are giving to its citizens to keep them ignorant, complacent, and not urgently demanding action on the rising climate change risks for which we are rapidly losing all control.
Below are the most critical links to understand the current climate reality, consequences timeframes, and our genuine climate extinction threat:
Here is the list of the primary and secondary consequences of climate change.
Click here for the 11 major climate change tipping points. This will explain how they work, and react with each other, what these climate tipping points are, and when they are anticipated to occur.
Click here for the four extinction-triggering climate change tipping points, and when we cross them, This page also will explain precisely why we have only 3-8 years left to maintain some level of effective control over our climate future before the immutable laws of atmospheric greenhouse gas physics take over. Click here for the four extinction-triggering tipping points.
The Thwaites doomsday glacier may be the most dangerous and soonest-arriving climate tipping point. It will cause insurance policy payout chaos and the most significant drop and loss of real estate value in human history.
Click here for how the climate consequences and tipping points will lead to the near-total extinction of humanity and widespread global collapse. Here you will discover the cascade of almost 80 primary and secondary climate change consequences unfolding and interacting with humanity's 11 other major global crises. After reading this page, you will understand why the extinction of half of humanity by 2050 is already an unavoidable reality and that all remains now is to fight to prevent our near-total extinction from 2050 to about 2070. Click here for the climate-driven processes of global collapse and mass to near-total extinction.
Click here to read the ten most dangerous things almost everyone does not understand about the runaway global heating emergency. It will also offer additional critical climate momentum and inertia factors and other climate insights as to why we only have 3-9 years left to maintain some level of effective control over our climate future.
Click here to understand why the 2025 global fossil fuel reduction targets are the honest, last-chance targets we need to make before it is too late to prevent near-total extinction. It contains detailed technical notes on the many factors behind the correctly adjusted 2025 target calculations.
Click here to explore the gross underestimation by the IPCC of climate solutions and consequences commonly used by the world's governments, the media, and those who do not understand the flaws in the IPCC's summary reports. This page will help you understand the long-term history of the IPCC underestimating the consequences, timeframes, and the needed global fossil fuel reduction targets by as much as 20-40% or more. This page and its linked pages will help explain why the current 2025 global fossil fuel reductions are so severe to compensate for the 60-plus years society has delayed and failed to make the required gradual fossil fuel reductions.
Click here to see precisely how the IPCC "cooked the global fossil fuel reduction calculations" and grossly skewed the current IPCC global fossil fuel reduction targets and calculations by including unproven, non-existent, and unscalable "carbon-sucking unicorn" technology into their projections.
Click here to see today's ten most critical facts about climate change and runaway global warming. It and its links will explain runaway global warming, what near-total extinction vs. total extinction means, and why we face only near-total extinction, not total extinction. Finally, it will explain humanity's real hope for a livable future.
Click here to learn more about managed climate retreat.
Click here for what our governments must do to save humanity before it is too late.
Click here to see what individuals and businesses need to do at this very late stage of the climate emergency.
Why does our independent climate change think tank provide the following uncensored climate information?
Because we firmly believe you:
- Have a right to have the same climate change information quietly being given exclusively to the world's wealthiest individuals and corporations by their expensive and highly-secretive risk analysis firms.
- Have a legitimate and inalienable right to the same uncensored climate change life and death-related information that privileged individuals within the government, military, and intelligence agencies have been briefed on.
- Have the same right to have the same life and death climate change catastrophe advanced warning as those in privileged positions.
- Have the same right to prepare your loved ones for the many now unavoidable climate change consequences. You also have the same right to protect your assets, just as the wealthy, the military, and the politically privileged are quietly doing now. And you,
- Have the right to be treated as a mature adult citizen who can (and has) successfully dealt with difficult news.
Our climate change think tank is tired of seeing ordinary citizens and the poor consistently suffer the greatest climate change-related losses and deaths. They suffer these losses and deaths significantly because they do not have the same access to uncensored climate change information that is first discreetly given to the privileged, wealthy, and high-level government members. Please share this information if you believe that access to accurate, uncensored climate change information should be equally available to everyone.
Conclusion
Most individuals are completely unaware of how bad climate change will get or how soon we will live in a climate nightmare. Unfortunately, this is not so for the world's better-run insurance companies. They know precisely how harmful climate change consequences will get and roughly how soon they will occur.
Naturally, they want nothing to do with those rapidly accelerating and out-of-control climate risks and are canceling, denying, and getting out of climate-vulnerable home, business, mortgage, and crop failure policies as fast as possible.
In the near future, only the poorly managed and poorly informed insurance companies will continue to carry climate-vulnerable policies in their portfolios and not export and externalize those losses and risks onto state and national governments. Those companies will not be around very long as climate change consequence damages continue to soar.
Because of this climate change risk aversion rising within the insurance industry, It is time to find out if your properties are in high-risk, 1,000-year climate change zones and how you can get ahead of your insurance company canceling you, denying you, or skyrocketing your rates!
Eventually, you might even consider becoming a climate change educator and activist to help prevent the worst climate change consequences from harming your finances.
To help do something about the climate change and global warming emergency, click here.
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