Odd Lots Why Insurers Are Pulling Out of High-Risk Areas
19 snips
Sep 25, 2023 
Melanie Gall, co-director of the Center for Emergency Management and Homeland Security at Arizona State University, discusses the rising challenges within the insurance industry due to climate change. She highlights why insurers are retreating from high-risk areas like Florida and California, citing increased natural disaster threats. The conversation delves into skyrocketing premiums and the emotional strain on homeowners who face tough decisions about their properties. Melanie emphasizes the urgent need for policy reforms to ensure sustainable disaster recovery and insurance accessibility.
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Insurance Crisis
- Insurance costs are surging, and companies are leaving high-risk markets like Florida and California.
- This is due to increased natural disaster risk, causing homeowner insurance to become unaffordable or unavailable.
SHELDUS Database
- The SHELDUS database uses data from the National Weather Service and the US Geological Survey to track disaster losses.
- It focuses on direct losses (property, crops, injuries, fatalities) but excludes indirect losses like business closures.
Rising Disaster Costs
- Natural disaster risk is increasing due to more frequent and severe events.
- Higher losses can also be attributed to increased population and property values in high-risk areas.