Insurers know which way the wind blows
“Climate-driven disasters are driving up payouts for insurers: last year was the fifth consecutive year with losses exceeding US$100 billion. That means higher premiums for policyholders — or no insurance at all. It’s “indicative of a growing crisis facing the industry”, writes climate scientist Scott St. George, who works in risk-modeling at a global insurance broker. Industry-sponsored programmes that pay people to weather-proof their homes are helping, but “they still treat the symptom, not the disease”, argues St. George. “Adaptation without mitigation is not enough. Ultimately, we need to reach net zero.” Nature Briefing, 28 March 2025

Nature, 25 March 2025

Climate change will send home insurance spiralling. Here’s how to control costs

Insurers rely on sophisticated catastrophe modelling to estimate risk exposure — and as climate risks are rising, so are the costs for protection.

In January, at least 29 people were killed and more than 18,000 homes and buildings were burnt or destroyed by fires in the Los Angeles area — one of the worst disasters in California’s history.

Insurance offers one way to support people who have suffered catastrophic losses. But insurance companies are more cautious than ever to provide aid for damages associated with wildfires and other weather-related risks. Last year, insurers worldwide paid out more than US$140 billion in claims relating to natural catastrophes, the fifth consecutive year with losses exceeding $100 billion.