The insurance market may see diminishing coverage and increased costs if current climate-change trends persist, according to a report by Ceres, a coalition of investors and environmental groups.
The report said catastrophic weather-related losses have been growing 10 times faster than premiums for the past 30 years and if the pattern continues, these "higher losses, in turn, will lead to higher premiums and deductibles, lowered limits and broader coverage restrictions."
Among the proactive steps recommended for insurers are improved loss data and analysis, and increased used of risk management techniques.