Some people would still debate all the world’s scientists on the reality of human-driven climate change. In the face of the 100s of millions spent by fossil fuel companies to disseminate disinformation, they struggle to believe it’s happening or that we are causing it. To them I say, forget about the science then. Follow the money instead. Fossil fuel companies can dispense disinformation about climate change but cannot outrun the cost of the catastrophes it perpetrates.
In 2020 the money changers of the world are stepping up on climate change. Why? It threatens their profits. The cracks in the dam are opening up. A major reallocation of capital has begun. If you don’t believe me check out what these guys are saying:
Munich Re and Swiss Re:
These two are the largest reinsurers in the world. That’s right, a reinsurer. You see, insurance companies can’t really afford to carry the costs of large natural disasters like the California 2019 fires (244 billion in loses) or hurricane Harvey (125 billion in loses). So, what do they do? They do the same thing we do, buy insurance coverage. They get it from reinsurers like Munich Re and Swiss Re. Reinsurers can cover the cost of an occasional natural disaster because they only happen every 100 years or so. But these events now occur so frequently that money is drying up.
In a recent report Munich Re authored a warning. The social framework supported by insurance is in danger of collapse due to climate change. In the near future insurance may be so costly it cannot be afforded or simply won’t be offered in high risk areas. Here is what Munich Re has to say:
"Climate change, predominantly the result of human activity, is real and has a major influence on weather-related natural disasters. It can dramatically alter a region’s risk situation in terms of severe storms, thunderstorms, floods or droughts. A thorough understanding of climate change is essential for an insurer's risk management.”
“If the risk from wildfires, flooding, storms or hail is increasing then the only sustainable option we have is to adjust our risk prices accordingly. In the long run it might become a social issue,” said after Munich Re published it’s report concerning climate change’s impact on wildfires. “Affordability is so critical [because] some people on low and average incomes in some regions will no longer be able to buy insurance.”
Nicolas Jeanmart a spokesperson for 34 national insurance associations in Europe talks about the effects climate change could have on fundamental social order as a result of skyrocketing insurance premiums.
“The sector is concerned that continuing global increases in temperature could make it increasingly difficult to offer the affordable financial protection that people deserve, and that modern society requires to function properly,” he said.