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CEO North America > CEO Life > Environment > Insurers fleeing Florida because of climate change

Insurers fleeing Florida because of climate change

in Environment
Insurers fleeing Florida because of climate change
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Many insurance companies are no longer offering policies in the Sunshine State.

Because of the rising costs of covering climate change-related damage, the companies say that they cannot make a profit.

Farmers, one of America’s biggest home insurers, was the latest company to pull out of Florida due to the high cost of payouts.

Insurers’ trouble in raising rates may also be a reason that they are retreating in places like Florida and California, where climate change is causing the costs of paying claims.

They say that when it’s hard to raise rates as companies have done in certain places, the best business decision is to leave.

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