The Daily The Possible Collapse of the U.S. Home Insurance System
78 snips
May 15, 2024 
Christopher Flavelle, a climate change reporter for The New York Times, dives into the crumbling U.S. home insurance market under the pressure of climate change. He reveals how escalating extreme weather is driving homeowners’ premiums sky-high while insurers are pulling out of numerous markets. Flavelle discusses the case study of Marshalltown, Iowa, where residents face a precarious balance between rising costs and limited coverage. The conversation also touches on the role of government in managing risks in high-risk zones as climate challenges become inevitable.
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Climate Change and Insurance
- Climate change is impacting the insurance market, particularly in Florida.
- This investigation explores the broader and deeper implications for homeowners nationwide.
Insurance Data Challenges
- Insurance industry data is difficult to obtain due to lack of federal regulation and insurer reluctance.
- Rating agencies, like AM Best, offer insights into the financial health of insurance companies.
Combined Ratio and Market Health
- The combined ratio, the ratio of revenue to costs, reveals the health of the insurance market.
- In 18 states, the homeowners insurance market lost money in the past year, indicating a spreading crisis.