No, CNBC, Insurance Premiums Are Not Increasing Due to Climate Change

[rangerrebew]

No, CNBC, Insurance Premiums Are Not Increasing Due to Climate Change
 
By
Anthony Watts
July 30, 2024
 

An article published on the CNBC website on July 29th made the claim in this headline: “Homeowners insurance premiums rose 21% last year. Climate change is partly to blame, experts say.”  The article goes on to say, “Experts say a rise in severe weather largely contributed to the increase, but it’s hard to tell how insurers are factoring climate risk into the cost of policies.”

This is false; several lines of data and research show that severe weather has been decreasing over the past several decades despite a modest warming of the climate.

The basis of the claim in the article is this:

Between May 2022 and May 2023, home insurance prices rose an average of 21% at renewal time, according to Policygenius.

https://climaterealism.com/2024/07/no-cnbc-insurance-premiums-are-not-increasing-due-to-climate-change/

[Smokin Joe]

Vast areas of tidewater were deemed to be in flood prone areas, even though they haven't flooded in the last (at least) 200 years.

Yep, that makes the insurance premiums go up, and I reckon that's to compensate for the Insurance Industry having to pay out for rebuilding homes that get the beach washed out from under them in storms, among other things. 

If that home had been there 50 years, for instance, the cost of getting the necessary permits alone has increased astronomically, as have the number of hoops to jump through in order to get them, and with government policies affecting the cost of building materials and fuels, the cost of rebuilding is at least going to keep pace with inflation.

The actuaries are just trying to stay ahead of the game.