Climate change and the extreme weather it brings present a serious conundrum for property and casualty insurance carriers. It’s prompting them to pursue different approaches to writing policies—but there’s no one-size-fits-all option.
Insurers evaluate both the frequency and the severity of extreme weather events to determine the extent of coverage and premium rates. In other words, they assess how often severe weather occurs and what the potential impact may be. Because of climate change, extreme weather events are happening more often, and at greater intensity, across the U.S.
