Op-Ed: why we need to fix disaster insurance markets this year and how to do it

illuminem summarizes for you the essential news of the day. Read the full piece on Earth.org or enjoy below:

🗞️ Driving the news: Carolyn Kousky, from the Environmental Defense Fund, highlights the urgent need to address the failing disaster insurance markets, exacerbated by climate change
• Insurance, crucial for financial protection against disasters, is becoming scarce, unaffordable, and inadequate in coverage, particularly in the United States

🔭 The context: The traditional insurance model struggles with disasters due to the simultaneous occurrence of large losses 
• Climate change further challenges this model, leading to insurer bankruptcies, soaring premiums, market withdrawals, and restricted coverage 
• Public sector programs are increasingly burdened as risks migrate from the private sector

🌍 Why it matters for the planet: Effective disaster insurance is vital for community resilience, enabling repair, rebuilding, and recovery, thus reducing stress and ensuring continued investment in sustainability 
• The failure of insurance markets signifies a broader challenge in adapting to and mitigating climate change impacts

⏭️ What's next: Kousky calls for transformative investments in risk reduction and climate adaptation, including stronger building codes, retreating from high-risk areas, and enhancing protective infrastructure 
• Insurers should play a key advisory role, support risk reduction investments, and promote policies that facilitate rebuilding to higher standards

💬 One quote: "Insurance plays a critical role in protecting people financially after a disaster. And once they have this financial protection, it benefits other areas of life, too." (Carolyn Kousky)

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