Insurance industry faces challenges due to climate change and geopolitical instability

The insurance industry is grappling with the effects of climate change and geopolitical instability. Rising costs of repairs have made providing auto policies more expensive for insurance companies. The danger of climate change has complicated the provision of homeowners insurance, causing difficulties in acquiring coverage, especially in places like Florida. Geopolitical instability, such as conflicts in Ukraine and potential conflict in Taiwan, adds another layer of risk, causing a time of instability for the insurance industry. The industry relies on actuarial science to evaluate risks and determine premiums, weighing factors ranging from health issues to property and casualty risks. While insurance provides a critical safety net, the costs of litigation and corruption within the industry can pose additional challenges.