The Role of U.S. Insurance Regulators in Responding to Climate Change

Abstract

This paper focuses on the role of insurance regulators in the wake of global warming. 1. Broad concerns of climate change on insurance (Mills 2007) · Magnitude and declining predictability of extreme weather events (influencing pricing and risk pooling)(at 134-135) · Even with predictability and risk pooling, abrupt events still hurts the insurance industry. (At 135) · The lack of data on insured risk. (At 135) · Unanticipated correlation between insurers’ core business and their investment - which might lead to heavy losses. (At 135) · Tendency for non-US insurers to respond to climate change and the adverse implication for US insurers. (At 135) · Difficult business environment in Asia and the emerging market (where more vulnerable to climate change)(at 135) · Availability and affordability of insurance (at 135-136) 2. Insurance companies face: (1) liability risk (on claims from all sorts), at 136-138; and (2) health and healthcare infrastructure (at 138 et seq). 3. Then, the author disucsses the role of insurance regulator in the managemnet of climate change costs.