Wade's World

Hurricane Ian’s Devastation Shows the Challenge of Pricing Climate Risk

Hurricane Ian is expected to inflict around $40 billion dollars worth of property damage. It is getting harder for insurers to analyze actuarial patterns due to climate change increasing these types of storms.

Climate Central estimated that there may be up to 4.4 million acres under water by 2050 due to climate change. This has put a lot of stress on insurers when pricing risk.

Florida’s homeowners insurance market is in a crisis. There has been 6 property insurers to fail this year.

This is news because of impact, human interest, and oddity. This tropical storm is impacting all of the people who live on the southeast coast, letting them know that they need to take action and do things to prepare for this storm. They are also impacted in the aftermath of the storm, where they might see increasing insurance policies in the future due to the reoccurrence of these storms more frequently.

Human interest and oddity are kind of the same thing in this case. The normal everyday citizen would like to read about this because it interests them and since they don’t happen often in this degree.

I also feel like this article could be expanded on with more detail. It felt very short and since this is a very important crisis, it could have covered a little bit more.

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