Climate change is already having many different impacts. Birds are migrating earlier. Storms are more intense. Flooding is more common. In short, the planet is reacting to human made carbon dioxide pollution being pumped into the atmosphere. But what about economic impacts from climate change? Are industries beginning to react to climate change?
Below we look at how four different industries are reacting to the impact climate change is having on their financial bottom lines.
First, we must note that this blog is not intended to prioritize the economic impacts of climate change over the environmental and wildlife impacts. Rather, it is offered to provide encouragement to those who still need to be swayed to take climate change seriously. Perhaps readers of this blog might use some of this information to change the mind of a climate skeptic.
Economic Impact of Climate Change on the
The insurance industry must prepare for climate change to avoid taking tremendous financial losses. Hurricane, wildfire and flood damage can devastate an insurer. For this reason, insurance companies are treating climate change as a real and significant threat.
In July 2018, the International Association of Insurance Supervisors released a white paper on the risk that climate change is presenting (present tense!) to the insurance industry. The paper cites the tremendous losses by the industry in 2017 -US$340 billion, the second highest loss rate on record. The paper notes that this loss rate “draw(s) attention to a clear insurance gap for weather-related losses.”
Read full blog post and learn about the other 3 Industries being affected.