New report shows the U.S. insurance industry provides inadequate coverage for climate-related disasters

Logo PR Newswire
PR Newswire

BOSTON, Jan. 24, 2023 /PRNewswire/ -- Ceres, in collaboration with the ESG Initiative and Wharton Climate Center at the Wharton School, released a report today that finds U.S. climate-related disaster insurance is often inaccessible, unaffordable, or does not meet the needs of certain populations.

Low- to moderate-income households and communities of color are disproportionally affected by climate disasters

Inclusive Insurance for Climate-Related Disasters: A Roadmap for the United States examines the role of insurance in recovery from climate disaster across socioeconomic groups in the U.S. The analysis found low- to moderate-income households and communities of color are disproportionally affected by climate disasters and more likely to experience financial shocks but without financial savings, or insurance, to cover them.

The frequency and severity of natural disasters are increasing due to climate change. According to the NOAA, climate disasters have inflicted $2.3 trillion in costs since 1980. Between 2012 and 2021, these events cost the U.S. at least $1 trillion in total.

Climate disasters translate into financial shocks to underserved communities. Costs include direct damage to property; expenses for evacuation and temporary living accommodations during repairs; interim expenses for disrupted utilities or transportation; and loss of income from business interruption.

The report's authors are Carolyn Kousky, Associate Vice President of Economics and Policy at EDF, and Karina French, Manager, Climate Resilience Research at EDF.

The analysis provides actionable guidance for developing an inclusive insurance system that is affordable, accessible, transparent, people-centered, and just. It provides recommendations to U.S. policymakers, regulators, and the private sector including:

  • Introducing new types of coverage for insurance to be fully inclusive.
  • Subsidizing insurance for vulnerable households by both the public sector and private sectors.
  • Creating a "Community Reinvestment Act" for the insurance sector to extend insurance coverage to unserved and underserved populations.
  • Developing public/private partnerships to design new types of insurance coverage and disaster mitigation programs.
  • Developing regulations to cover the new types of insurance coverage.
  • Simplifying claims processes and coverage statements for all policyholders.
  • Making insurance coverage and claims data public for research purposes.
  • Developing new regulations to prevent discrimination in insurance.

This report was done in consultation with organizations in several affected communities. It includes studies from New York City, Portland, Oregon, and Puerto Rico that outline providing inclusive insurance to unserved and underserved communities.

At 1 pm ET on Feb. 22, Ceres will host a webinar diving further into report findings and recommendations. Register here.

Media Contact: Reggie Zimmerman

Original Publication

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/new-report-shows-the-us-insurance-industry-provides-inadequate-coverage-for-climate-related-disasters-301728732.html

SOURCE Ceres

Logo U.S. News & World Report
PoliticsBy Associated Press2023-01-24 02:04:08
SANTA FE, N.M. (AP) A legislative panel advanced a bill Monday that would help local governments plan in advance for climate-related threats to public health...

Logo PR Newswire
DUBLIN, Jan. 23, 2023 /PRNewswire/ -- The "Final Expense Insurance Market Research Report by Policy Type (Guaranteed Issue, Pre-need Insurance, and...

Logo PR Newswire
DUBLIN, Jan. 23, 2023 /PRNewswire/ -- The "Usage-Based Insurance Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027"...

Logo Benzinga
Business / FinanceBy Pr Newswire2023-01-18 18:00:00
Every community across Canada is at heightened risk of natural catastrophes TORONTO, Jan. 18, 2023 /CNW/ - Severe weather across Canada continues to...

Logo U.S. News & World Report
PoliticsBy Health Day2023-01-23 12:11:00
By Cara Murez HealthDay Reporter MONDAY, Jan. 23, 2023 (HealthDay News) -- When the deadly Camp Fire swept through Northern California in 2018, it may have...

Logo PR Newswire
Two hurricanes and natural gas price increases expected to impact customer bills Fuel bills from 2022 already paid by FPL but not yet recovered would be...

Logo The Business Journals
Business / Finance2023-01-24 06:50:00
The number of policies has more than doubled since 2021.

Logo Bloomberg
TechnologyBy Mark Gongloff2023-01-23 14:00:16
Fossil-fuel companies’ climate messaging may have changed to fit the new century, but the goal is the same the industry has had for decades: to delay action...

Logo U.S. News & World Report
PoliticsBy Associated Press2023-01-24 11:12:31
BERLIN (AP) A prominent environmental group said Tuesday that it is suing the German government over the failure to meet its own climate targets. Friends of...

Logo PR Newswire
HUD's Office of Policy Development and Research WASHINGTON, Jan. 23, 2023 /PRNewswire/ -- The Winter 2023 issue of Evidence Matters: Transforming Knowledge...

Logo World Health Organization
Health2023-01-23 10:29:41
WHO is launching its 2023 health emergency appeal today for US$ 2.54 billion to provide assistance to millions of people around the world facing health...

Logo PR Newswire
LOS ANGELES, Jan. 23, 2023 /PRNewswire/ -- With the much needed winter rains we received in the last few weeks here in California comes the onslaught of...

Logo NewsFileCorp
Press Release2023-01-24 11:07:00
Los Angeles, California-based Cal Commercial Insurance has just updated its selection of cost-effective workers' compensation policies for State Fund...

Logo Benzinga
Business / FinanceBy Pr Newswire2023-01-23 16:15:00
Live in all 50 states, Coverdash's frictionless insurance experience allows businessowners, e-commerce merchants, and gig-economy workers to source coverage...

Logo Benzinga
Business / FinanceBy Pr Newswire2023-01-23 17:52:00
Voters Top Concerns for New Congress Are Public Safety and Inflation OAKTON, Va., Jan. 23, 2023 /PRNewswire/ -- Our America officially released the results...

Logo Nasdaq
Business / FinanceBy The Motley Fool2023-01-23 21:00:18
Image source: Getty Images Workers who are self-employed, or who don't have access to a health insurance plan through an employer, often find themselves...

Logo PR Newswire
DUBLIN, Jan. 23, 2023 /PRNewswire/ -- The "P&C Insurance Software Market By Component, By Deployment Model, By Application: Global Opportunity Analysis...

Logo PR Newswire
TechnologyPress Release2023-01-24 12:03:00
Springbuk's 2023 Employee Health Trends report reveals utilization and treatment cost trends that employers should consider when planning next year's...