Quote:
Originally Posted by scumtoes
Why would any bank or insurance company touch anything within feet of the shoreline if it was all going to flood away in a few years?
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This is already happening. Check out this podcast for a look at how insurance companies and State level governments in the US are responding to increasing disasters:
https://www.nytimes.com/2020/09/27/p...on-crisis.html
Some highlights:
t=9m00s
"Florida officials have already acknowledged that defending some roadways against the sea will be unaffordable. And the nations federal flood insurance program is
for the first time requiring that some of its payouts be used to retreat from climate threats across the country. It will soon prove too expensive to maintain the status quo."
t=22m59s
"Hurricane Andrew reduced parts of cities to landfill and cost insurers nearly 16 billion in payouts.
Many insurance companies, recognizing the likelihood it would happen again, declined to renew policies and left the state (Florida). So the Florida Legislature created a state run company to insure properties itself. Preventing both an exodus and an economic collapse by essentially pretending that the climate vulnerabilities didn't exist."
t=24m25s
"Keenan, who is now an associate professor of real estate at Tulane Universities School of Architecture ....... Last Fall though as the previous round of fires ravaged California his phone began to ring with private equity investors and bankers all looking for his read on the states future.
There interest suggested a growing investor grade nervousness about swiftly mounting environmental risk in the hottest real estate markets in the country.
It's an early sign ....... that the momentum is about to switch directions"
t=26m07s
"The Tubbs fire, as it was called, shouldn't have been possible. Coffey Park is surrounded not by vegetation, but by concrete and malls and freeways. So insurers had rated it as basically zero risk according to Kevin Van Leer. Then a risk modeler from the global insurance liability firm Risk Management Solutions. He now does similar work for Cape Analytics. But Van Leer, who had spent 7 years picking through the debris left by disasters to understand how insurers could anticipate (and price) the risk of their happening again had begun to see other "impossible" fires ....... He said "
alarm bells started going off for the insurance industry"."
t=28m52s
"
It was no surprise then that California's property insurers, having watched 26 years worth of profits dissolve over 24 months, began dropping policies. Or that California's insurance commissioner trying to slow the slide placed a moratorium on insurance cancellations for parts of the state in 2020. In February the legislature introduced a bill compelling California to, in the words of one consumer advocacy group, "Follow the lead of Florida by mandating that insurance remain available. In this case that with a requirement that homeowners first harden their properties against fire"."
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