Here’s how climate change is impacting people and their insurance needs

As heat waves bring hot temperatures to the United States and Europe, the conversation of climate change is an important one. Heat waves, the increased frequency and severity of natural disasters, fires, droughts and floods are all going to be an ongoing issue, and one area that will be impacted is the insurance industry and how much people are going to pay for it. 

As more heatwaves, fires, hurricanes and floods occur, more people will find themselves living in “At Risk” areas. As the “At Risk” areas spread and grow geographically, the number of people having to pay more for insurance will increase.

As extreme temperatures impact areas that lack the proper infrastructure to withstand the extreme heat or cold, it’s not just property and infrastructure that’s at risk – it’s also people’s health. In Texas, 246 people died as a result of the February winter storm. Many more suffered from frostbite and other health issues as a result of the power grid failure.

Recently, over 2,000 people died in Spain and Portugal from heat-related causes in July, according to Axios.

“Climate change will prove to be extremely taxing on the healthcare, home and property insurance industries,” explains Chief Growth Officer of Zelros Linh Ho. “Insurance as a whole could become more expensive as more people and areas suffer the impacts of climate change.”

Right now, there are people who cannot afford insurance or think insurance is too high at the present time. Climate change could exacerbate current insurance industry trends and make insurance harder to obtain and afford.

• 44.6% of people have 2-3 insurance policies right now, while 32.5% report having one
• As of 2022, 36.2% of people surveyed said that they had a major life event occur that impacted their insurance needs
• 33% of people do not have an active health insurance policy
• 43.1% of people surveyed said they do not have a life insurance policy
• 56.2% of people believe that insurance is too expensive to obtain
• 60% of people believe insurance premiums are too high

These numbers, from a Zelros study of 1,000 people across the US, Canada, Europe and the UK, show that people today aren’t as covered by affordable insurance as they should be. 

Will these numbers grow in the future as climate conditions around the world worsen?

“It is important for everyone to be aware of the future risks of climate change. AI and ML technology can provide some insight to insurers and people so everyone can make informed decisions about their future insurance coverage needs,” says Linh Ho.

Founded in 2016 by Christophe Bourguignat and Damien Philippon, Zelros is using Artificial Intelligence and Machine Learning technology to help insurers provide policyholders with the right coverage for their needs as they occur in real-time.