(Photo by Joe Raedle/Getty Images)
The candidates for North Carolina Commissioner of Insurance have been sparring of late about the rising costs of homeowners’ insurance and that debate has highlighted two important truths.
First is that the impacts of climate change are dramatically impacting the insurance industry, and the rates consumers pay. Sadly, with destructive storms like Helene and Milton becoming ever more common, there’s no way that for-profit insurance companies will be able to continue to operate without accounting for rising risks. It’s just simple math.
All that said, it’s also true that when it comes to crafting fair rates that protect consumers and assure reasonable industry profits, it’s imperative that regulators carefully control the process in a fully transparent way in which the public can see behind the curtain and understand how and why rates are being set.
Now add that government may need to step in in some new areas – as it does now with flood insurance – and it’s clear that change lies ahead.
The bottom line: Climate change is altering many aspects of modern life. Insurance will continue to be one of them.
For NC Newsline, I’m Rob Schofield.