Climate Matters: Insurance collapsing under the climate

The companies insuring against Mother Nature are finding it increasingly harder to do so in a changing climate. Bigger wildfires, stronger hurricanes, and more severe storms all put more strain on the industry protecting our property. But the future looks to hold more disasters that will cost even more money to bounce back from.

The trends in weather influence the trends in insurance costs, and both are on the rise long term. Wildfires are now growing into megafires, causing insurers to flee from California and the West. More intense hurricanes are influencing a pull from the coasts. And other "secondary" threats are now adding up to a larger part of the sum.

Just last year, Missouri recorded its highest number of billion-dollar disasters in a year at 11, and this flipped the insurance script. Homeowner's insurance had been fairly profitable in the state over the last decade until it all sank under the storms. Missouri homeowner's insurance costs increased over 20% this year to offset these losses, and this is a trend felt nationwide.