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U.S. insurers may start feeling the heat on climate change mitigation

The U.S. property and casualty industry may be nearing a crossroads in its approach to climate change, perhaps prompting a more proactive strategy to limit the threat to the environment and insurance company bottom lines over the long term.

By Sam J. Friedman | Updated on March 02, 2015
External pressure on the industry to deal more comprehensively with climate change risks is likely to rise due to new demands from regulators and rating agencies.

The U.S. property and casualty industry may be nearing a crossroads in its approach to climate change, perhaps prompting a more proactive strategy on the part of individual carriers and insurance associations to limit the threat to the environment and company bottom lines over the long term.

The causes, pace, and repercussions of climate change may remain controversial for some. However, since it is often insurers that have to pay for the increasing frequency and severity of weather-related damages, delay in responding due to skepticism might prove costly. Indeed, it would be prudent for carriers to prepare for the worst when it comes to climate change, just in case the consensus of the vast majority of scientists in the field prove to be correct.

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