How Insurance Companies Can Go Bankrupt from Climate Change

12/23/19

“How can insurance companies go bankrupt just from climate change?”

 

Climate change is wreaking havoc on finances everywhere. And insurance companies are often responsible for securing the losses that their customers face. In 2018, the Paradise Fire in Northern California destroyed properties whose combined claims were valued at 64 million USD to the Merced Property & Casualty Company. The problem is, the company only had 23 million USD in assets! This caused the 112-year-old company to file for bankruptcy, illustrating How Insurance Companies Can Go Bankrupt from Climate Change. As time goes on, these companies will have to be more careful about their insurance policies and how their organizations operate.