As climate change intensifies, a dangerous cycle is emerging where extreme weather events are rendering entire communities financially vulnerable. A new report from the Resilient Cities Network and Tokio Marine Group, titled *Under Pressure, Overdue*, reveals that insurers are increasingly pulling coverage from high-risk areas or raising premiums to unaffordable levels. This creates a severe „protection gap”—the difference between total climate-related losses and the amount covered by insurance—leaving homeowners and municipalities to bear the full brunt of recovery costs. The report warns that without intervention, some urban areas could soon be deemed „uninsurable,” as the current resilience finance framework fails to keep pace with escalating risks.
The core of the problem lies in the feedback loop between fossil fuel emissions, worsening weather, and financial instability. Continued reliance on dirty energy sources exacerbates planetary overheating, leading to more powerful storms, floods, and droughts. Communities in coastal or drought-prone regions are hit hardest, facing not only physical destruction but also the collapse of their financial safety nets. The insurance industry, built on historical risk models, is now struggling to adapt, with companies finding it too risky to underwrite policies in these vulnerable zones, thereby withdrawing a critical pillar of post-disaster recovery.
In response, experts are calling for a fundamental transformation in the role of insurers. Tokio Marine Group CEO Brad Irick argues the industry must evolve „beyond claims payouts to proactive risk partnership,” implying a need for greater investment in community resilience and preventive measures. From a broader perspective, mitigating this crisis requires a global shift to renewable energy to slow the drivers of climate change. On an individual level, adopting sustainable practices—like reducing single-use plastics and utilizing public transport—can help lessen one’s environmental footprint.
Ultimately, closing the protection gap demands coordinated action. This includes policy interventions, such as government incentives for energy-efficient home upgrades, and innovative financial instruments that pool risk more effectively. The report serves as a stark reminder that in the face of a changing climate, building resilience is not just an environmental imperative but an urgent economic one, essential for securing the insurability and viability of communities worldwide.
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Forrás: https://www.yahoo.com/news/articles/experts-issue-warning-troubling-trend-233000315.html.