Why insurers worry the world could soon become uninsurable

[NickB79]

https://www.cnbc.com/amp/2025/08/08/climate-insurers-are-worried-the-world-could-soon-become-uninsurable-.html

Some fear the world is fast approaching temperature levels where professional risk managers will no longer be able to offer cover for financial services.

Günther Thallinger, a board member at Allianz, one of the world's biggest insurers, says the climate crisis could make adaptation economically unviable.

Zurich Insurance Group, meanwhile, said alongside a recent research paper assessing climate resilience that the outlook looks "alarmingly bleak."

The fact that insurers take climate change seriously proves that the science was settled years ago.

[msongs]

1. insurance is greed hog racket nt

[drmeow]

2. I'd like to correct that title

Why insurers worry the world could soon become uninsurable at a rate that is highly profitable to them.

Yes, there are places where the cost of insurance would be so astronomically high that it would be unaffordable but I'll bet there are still lots and lots and lots of places there a 100% non-profit collective (USAA?) could still insure homes.

[NickB79]

12. The problem is that 80% of the population lives in those uninsurable areas

Almost anything oceanfront, for example. Once the Thwaites Glacier gives way, we'll see 5' of sea level rise this century alone.

There's going to be a housing collapse and mass migration event if insurance becomes unaffordable to the average person. A Dust Bowl Okies event on steroids

[drmeow]

14. That doesn't change my point

about profits.

[EdmondDantes_]

16. Except Florida isn't limiting their profits and companies are pulling out

It's not just California where the rates are limited. Florida has even taken steps to protect insurance companies. It's like with health insurance companies losing money. Everything has become more expensive and the rates have to be higher to keep the companies in business.

It's not as simple as saying they won't make as much money, it's about being able to stay in business in an environment that's more expensive and more volatile than in the past and nobody having caught up yet, insurers or the insured.

[druidity33]

3. Kim Stanley Robinson...

delves into this in a couple of his novels. They're good reads. Post Apocalyptic style...

edited to add the book link:
https://en.wikipedia.org/wiki/The_Ministry_for_the_Future

[TommyT139]

4. Such an excellent book.

I wouldn't call "Ministry for the Future" post-apocalyptic, per se, because it feels like stuff that's starting to happen now.(And as bad as things are, we're not quite at apocalypse defcon whatever.) Certainly the negative climate impacts, and also some of the ideas that are being seriously discussed to ameliorate the worst consequences. There's some fascinating science around this.

Anyway, maybe pre-apocalyptic, with a hopeful slant? However it's categorized, it's great storytelling and characters -- and available as an audiobook, too.

[druidity33]

8. I was conflating...

He's got 2 other books that talk about insurance becoming extinct. The New York one and 2140(?). Not quite sure of the titles. Both were definitely post climate apocalypse... i guess it depends on what you consider apocalyptic.

[TommyT139]

9. I have to read his others

I'm trying hard every day to not define Trump's "America" as apocalyptic...because it's gonna get worse before it gets better!

[BadgerKid]

5. All insurers are looking at trouble IMO.

A weak economy and executive compensation mean less money available for payouts. Like health care, but with everything.

[Skittles]

6. it isn't INSURANCE they are worried about

it is PROFITABILITY

[NickB79]

11. How do you envision insurance working if not profitable?

Any private business that never turns a profit goes out of business in short order.

The only other option would be government-funded insurance, and with multi-billion dollar climate disasters becoming regular events now (with much worse to come), no nation on Earth could cover that in perpetuity.

[Skittles]

15. they make EXCESS PROFITS

and they want to KEEP IT THAT WAY

[NickB79]

17. You aren't grasping the size of the climate change catastrophe coming our way

The flooding in Texas alone was a $20 billion event. These will become commonplace as we push past 2C, around 2050.

There won't be ANY profits to be had, anywhere, for insurance companies on the path we're on.

[Skittles]

18. LOL, I LIVE IN TEXAS

I KNOW CLIMATE CHANGE.

All I'm saying is, corporations DON'T GIVE A FUCK ABOUT PEOPLE, all they care about is MONEY.

[no_hypocrisy]

7. I wouldn't own and live on property that couldn't be

protected by flood insurance if it was located where hurricanes visit.

And the South Shore of Long Island (i.e., The Hamptons) should take note that their eight-figure homes could be rendered worthless with one good hurricane one day.

[Brainfodder]

10. Costs too high to even afford your admin/CEO, yeah we believe that!

[Prairie Gates]

13. Insurers worried they'll only be able to make modest to good profits instead of obscene profits

Fuck these people sideways.