Debunking Economics - the podcast

Insurance, the canary for climate change

12 snips
Jun 4, 2025
The podcast dives into the insurance industry's struggle with rising premiums and the exclusion of lower-income households. It suggests that insurers might drive climate change action more effectively than politicians, acting as a warning system. Personal anecdotes reveal frustrations with navigating insurance complexities. The discussion also highlights the need for government-run insurance models amidst increasing uninsurable areas and the urgent adaptation required from the industry as catastrophic events surge, marking critical intersections of finance and the environment.
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ANECDOTE

Phil's Car Insurance Battle

  • Phil Dobby recounts trying to lower his car insurance premium due to reduced mileage.
  • He ended up paying more due to a high administration fee, exposing issues in insurance pricing algorithms.
INSIGHT

Insurance Handles Episodic, Not Systematic Risks

  • Insurance companies distribute episodic risks like car accidents and floods through premiums.
  • The system breaks down with systematic risks where events become too frequent or widespread.
ANECDOTE

Insurance Legal Battles Increase Costs

  • Steve Keen shares a car accident legally contested between insurance companies.
  • This illustrates how multiple insurers hire lawyers to avoid payments, raising costs.
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