Low flood insurance coverage means danger as climate crisis deepens

Low flood insurance coverage means danger as climate crisis deepens

Climate change has increased the likelihood of high-intensity heavy rains and flash floods, and consequently higher flood-related losses, but insurance coverage remains dangerously low.

This year, heavy rains have caused flooding that flooded cities in China and South Korea and disrupted India’s water and electricity supplies, while drought has jeopardized farmers’ crops across Europe.

Heavy rains and floods also flooded a third of Pakistan. This week, the United Nations turned to the country for help in what it called an “unprecedented climate disaster.”

The United States has also experienced flooding in recent weeks and months, including in Kentucky and Texas. Such events highlight the gap in insurance.

“The recent events in Kentucky, Mississippi and Texas are a sad reminder of how devastating floods can be to our lives,” Keith Wolfe, president of real estate and a victim at Swiss Re, told Reuters.

“Even though the private flood insurance market has been gaining momentum over the past few years, too many people are still not insured against floods, and most of those affected by these events are not insured, allowing them to collect the pieces at their own expense.”

According to Swiss Re, the growth potential of insurance coverage is huge. Nearly 40% of the US population lives in coastal counties and 10% in flood plains.

The report says that better data and sophisticated risk mapping and modeling are enabling more accurate assessments of flood risks and creating opportunities for growth in the private sector flood insurance market.

About the photo: An SUV rests in flood waters in this northeast neighborhood of Jackson, Mississippi on Monday, August 29, 2022. Flooding affected a number of areas located near the Pearl River. (AP Photo/Rogelio V. Solis)

Previous Post
California approves bill to protect workers who use marijuana at home
Blog

California approves bill to protect workers who use marijuana at home

Next Post

Two more arrested in the case of the long operation “Rubicon”

Leave a Reply

Your email address will not be published. Required fields are marked *