Climate Change Should not be On Your Worry List

Well that is how Berkshire Hathaway is thinking about climate change:

From their new report (pdf, pp.25-26):

…insurance policies are customarily written for one year and repriced annually to reflect changing exposures. Increased possibilities of loss translate promptly into increased premiums.

Up to now, climate change has not produced more frequent nor more costly hurricanes nor other weather-related events covered by insurance. As a consequence, U.S. super-cat rates have fallen steadily in recent years, which is why we have backed away from that business. If super-cats become costlier and more frequent, the likely – though far from certain – effect on Berkshire’s insurance business would be to make it larger and more profitable.

As a citizen, you may understandably find climate change keeping you up nights. As a homeowner in a low-lying area, you may wish to consider moving. But when you are thinking only as a shareholder of a major insurer, climate change should not be on your list of worries.

H/T to The Marginal Revolution

The market has spoken, no need to worry about climate change. One note of caution La Niña condition will return next year and with it more hurricanes and tornadoes. More insurance risk.  Therefore, continue fretting Nevada County liberals!

 

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About Russ Steele

Freelance writer and climate change blogger. Russ spent twenty years in the Air Force as a navigator specializing in electronics warfare and digital systems. After his service he was employed for sixteen years as concept developer for TRW, an aerospace and automotive company, and then was CEO of a non-profit Internet provider for 18 months. Russ's articles have appeared in Comstock's Business, Capitol Journal, Trailer Life, Monitoring Times, and Idaho Magazine.
This entry was posted in Analysis, Climate, Climate Change, Local. Bookmark the permalink.

One Response to Climate Change Should not be On Your Worry List

  1. Environmental advocacy groups have criticized billionaire businessman Warren Buffett for his recent claims that climate change will be a manageable and profitable risk for the insurance industry.

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