Insurance companies have no doubts about global warming
In some low-lying areas of the Bahamas, insurers are now refusing to write policies.
Insurance firms are leaving the state of Florida. But even as the risk of flooding from hurricanes grows, development in some low lying areas continues, supported by state-subsidized insurance.
The consulting firm Ernst & Young considers climate change the greatest strategic risk to property casualty insurance firms.
Now, these companies don’t like to skip out on any neighborhood. So when they do, economists call it a “market signal.” And the message, loosely translated, is, “What are you people smoking? Live here at your own risk.” And the housing market’s heard it. If you want to buy in Queen’s Cove, you can’t get insurance, so the bank won’t give you a mortgage.
Story and photo slideshow at link.