Insurers Raise Premiums Amid Growing Climate Risks

Extreme weather events exacerbated by climate change are increasingly causing significant destruction, leading insurers to hike their premiums. Munich Re, a major reinsurance company, indicates that the rising number of claims necessitates higher premiums, as seen with State Farm ceasing new policies in California due to escalating disaster risks. Globally, annual insured damages from natural disasters now reach around $100 billion, with 80-90% weather-related. The German Meteorological Service warns of more frequent extreme events, predicting damages in Germany could range from €280 to €900 billion by 2050. The insurance industry emphasizes the need for proactive climate-adapted planning, construction, and renovation to mitigate risks and control costs, urging immediate action to prevent premiums from doubling within a decade.