A report from the group Inside Track highlights that insurance companies are increasingly restricting coverage or withdrawing from specific sectors and regions to manage climate-related risks. Insurers are reportedly removing wildfire coverage from policies and limiting protection in areas vulnerable to environmental hazards.
Industry professionals note that climate risks are rarely prioritized in board meetings. Some firms are allegedly pressuring actuaries and modelers to downplay future risk projections to maintain short-term business operations and secure deals.
Amanda Blanc, CEO of Aviva Insurance, stated that new homes in the UK are becoming uninsurable due to flood risks. Similarly, Günther Thallinger of Allianz warned that entire regions face the prospect of becoming uninsurable.
Anthony Hobley, formerly of Howden Group Holdings, pointed out that the industry practice of writing one-year policies masks long-term risks. Meanwhile, in Florida and Louisiana, hurricane insurance costs have tripled since 2023, with some providers exiting these markets entirely.
