Insurance is a legalized ponzi scheme. Insurance should never be profitable and should be nationalized either on the state level or on the federal level.
When MAGA losers go off on tHe RaDiCaL lEfT talking about Democrats, this right here is a reminder that liberals and dems are not the left. The left advocates nationalized insurance, and nationalized just about every other major sector of essential infrastructure including power, transportation, water, internet... The Business Party with its right wing democrats and fascist republicans don't support any of that.
Insurance requires predictably, if not of events then of costs over X timescale. When the climate system is undergoing a rapid change at a rate that isn’t completely understood or predictable then we end up in uninsurable territory.
Never mind the fact that insurance product consumers in the developed world are habituated to having low and stable insurance rates. Consumers will revolt, and politics will take over.
Expect financial ruin to any government who steps in to try and fill the gap. There are clearly some properties built in locations, and of materials, that are not economically viable to rebuild or insure. This will end poorly.
What happens when the real estate valuations finally pop in these beautiful but dangerous/difficult to defend locations? How will the system adjust to the scale of the losses, and the growth in values for traditional urban real estate…
Insurance doesn't require predictability. To be more precise, insurance as a for-profit business model requires predictability. Insurance as a bailout of last resort for individuals doesn't require that.
-
And we mostly already have that, in case of larger disasters the government will cover most of the cost anyway. We just let private corporations insure profitable stuff and pull money out of the system, while the government insures all the big stuff. In this system, lots of people fall through the cracks, while the government subsidizes insurance for rich people (flood insurance for coastal areas has been subsidized by the government for decades) as well.
Ehhh the government already does provide insurance. States typically have a FAIR plan where the state guarantees a way to get insurance as a last resort. It is subsidized by taxpayers and the insurance companies that do business in the state by percentage of written premium. It also costs more than private insurance, has worse deductibles, fewer coverages, and more restrictions on payouts. People wouldn’t be able to live in hurricane areas without NFIP flood insurance, and FEMA is always about bankrupt. The recent California wildfires has California’s state FAIR plan something like $6B short of its claims obligations. The private insurance companies in the state will have to cover that. This will lead to them charging more and/or pulling out of the state entirely. It is easily an insurance death spiral kind of event if more wildfires keep happening year in and year out in these heavily populated areas. If taxpayers end up having to foot the bill as insurers pull out, taxes and inflation will go insane, and material/labor inflation is being driven by this anyway. We are rapidly approaching a point where we are going to have to stop subsidizing people who choose to live in high risk areas. And more areas are becoming high risk.
Considering the fact that "insurance" is not a real thing and literally just a scam humans invented to make money off of disaster, the answer is yes, the world is not insurable.
Bull shit. It's possible to put an insurance estimate to everything, the insurers are just saying "uninsurable" because they're afraid of facing political reprisals if they say the true numbers.
No, there's plenty of opportunity for insurance. Raking in massive amounts of cash for your shareholders because the business model is unfairly flipped is where the problem is
I have come to accept that it’s not impossible that a large part of LA, including my second home, will burn to the ground in the next 10 years. I mean like 10x what happened in the losses of Palisades, Altadena, all the affected neighborhoods.
We had an extremely narrow miss on much of Florida, while Asheville was devastated. This is going to happen more and more.
There’s no insuring this scope of tragedy. The economy and government are out of their depth on this.
I am hiding in my small corner of the US that is relatively safe from climate crisis weather. And yet there was a time when I had to mask up from wildfires in Canada. I am nowhere near the Canadian border, I’m several states away.
Sorry to all my collapseniks in the line of… well literally in the line of fire in many cases, like my family in San Francisco.
The following submission statement was provided by /u/saaggy_peneer:
this content is collapse related as it is about the difficulty of insuring things like buildings as the world is collapsing due to more fires, hurricanes, etc
opening paragraph:
I ask the question, "is the world becoming uninsurable?" not as an expert on the insurance industry but as a homeowner who can no longer obtain hurricane insurance, and as an observer of long-term trends keenly interested in the way global risks pile up either unseen, denied or misinterpreted until it's too late to mitigate them.
Please reply to OP's comment here: https://old.reddit.com/r/collapse/comments/1i3kdu8/is_the_world_becoming_uninsurable/m7nkzss/
this content is collapse related as it is about the difficulty of insuring things like buildings as the world is collapsing due to more fires, hurricanes, etc
opening paragraph:
I ask the question, "is the world becoming uninsurable?" not as an expert on the insurance industry but as a homeowner who can no longer obtain hurricane insurance, and as an observer of long-term trends keenly interested in the way global risks pile up either unseen, denied or misinterpreted until it's too late to mitigate them.
As a final reminder, your post must include a valid submission statement within 30 min. Your post is missing a submission statement.
Submission statements must clearly explain why the linked content is collapse-related. They should contain a summary or description of the content and must be at least 150 characters in length. They must be original and not overly composed of quoted text from the source. If a statement is not added within thirty minutes of posting it will be removed.
Please message the moderators if you feel this was an error. Responses to this comment are not monitored.
CerddwrRhyddid@reddit
Yep. Or at least that's the trajectory.
Karanpmc@reddit
Yes
mbz321@reddit
Yes, but in bold
christophlc6@reddit
Cat.
cycle_addict_@reddit
Yes.
egg_static5@reddit
Yes.
MrMisanthrope411@reddit
Yes
Admirable_Advice8831@reddit
r/yep
Thedogdrinkscoffee@reddit
Oui
Mas_Tacos_19@reddit
Si
Deskman77@reddit
Nai
DestroyTheMatrix_3@reddit
Hai
EarthBasedHumanBeing@reddit
Ooga booga
Unfair_Creme9398@reddit
Ja.
Tearakan@reddit
Yep. Insurance will just keep retreating at this point.
LetterheadAshamed716@reddit
Insurance is a legalized ponzi scheme. Insurance should never be profitable and should be nationalized either on the state level or on the federal level.
TheBroWhoLifts@reddit
When MAGA losers go off on tHe RaDiCaL lEfT talking about Democrats, this right here is a reminder that liberals and dems are not the left. The left advocates nationalized insurance, and nationalized just about every other major sector of essential infrastructure including power, transportation, water, internet... The Business Party with its right wing democrats and fascist republicans don't support any of that.
How_Do_You_Crash@reddit
Insurance requires predictably, if not of events then of costs over X timescale. When the climate system is undergoing a rapid change at a rate that isn’t completely understood or predictable then we end up in uninsurable territory.
Never mind the fact that insurance product consumers in the developed world are habituated to having low and stable insurance rates. Consumers will revolt, and politics will take over.
Expect financial ruin to any government who steps in to try and fill the gap. There are clearly some properties built in locations, and of materials, that are not economically viable to rebuild or insure. This will end poorly.
What happens when the real estate valuations finally pop in these beautiful but dangerous/difficult to defend locations? How will the system adjust to the scale of the losses, and the growth in values for traditional urban real estate…
lovely_sombrero@reddit
Insurance doesn't require predictability. To be more precise, insurance as a for-profit business model requires predictability. Insurance as a bailout of last resort for individuals doesn't require that.
-
And we mostly already have that, in case of larger disasters the government will cover most of the cost anyway. We just let private corporations insure profitable stuff and pull money out of the system, while the government insures all the big stuff. In this system, lots of people fall through the cracks, while the government subsidizes insurance for rich people (flood insurance for coastal areas has been subsidized by the government for decades) as well.
fedfuzz1970@reddit
Privatize profits, socialize losses.
rediKELous@reddit
Ehhh the government already does provide insurance. States typically have a FAIR plan where the state guarantees a way to get insurance as a last resort. It is subsidized by taxpayers and the insurance companies that do business in the state by percentage of written premium. It also costs more than private insurance, has worse deductibles, fewer coverages, and more restrictions on payouts. People wouldn’t be able to live in hurricane areas without NFIP flood insurance, and FEMA is always about bankrupt. The recent California wildfires has California’s state FAIR plan something like $6B short of its claims obligations. The private insurance companies in the state will have to cover that. This will lead to them charging more and/or pulling out of the state entirely. It is easily an insurance death spiral kind of event if more wildfires keep happening year in and year out in these heavily populated areas. If taxpayers end up having to foot the bill as insurers pull out, taxes and inflation will go insane, and material/labor inflation is being driven by this anyway. We are rapidly approaching a point where we are going to have to stop subsidizing people who choose to live in high risk areas. And more areas are becoming high risk.
fedfuzz1970@reddit
Never underestimate politicians looking for donations, votes and lots of "likes". They will sell their mothers for any of the above.
unseemly_turbidity@reddit
Asks if the world is becoming uninsurable. Goes on to list US states.
Z3r0sama2017@reddit
Wrong question. It's not is the world becoming uninsurable, but are the people willing to pay the rates insurers will ask for?
Busy-Support4047@reddit
Considering the fact that "insurance" is not a real thing and literally just a scam humans invented to make money off of disaster, the answer is yes, the world is not insurable.
OGSyedIsEverywhere@reddit
Bull shit. It's possible to put an insurance estimate to everything, the insurers are just saying "uninsurable" because they're afraid of facing political reprisals if they say the true numbers.
DenimCarpet@reddit
No, there's plenty of opportunity for insurance. Raking in massive amounts of cash for your shareholders because the business model is unfairly flipped is where the problem is
Savings-Expression80@reddit
We've hit the intercept point where
A. Insurance companies are trying to wring out ever-increasing profit and
B. Climate change is causing worse events at a more frequent interval
🤷♂️
stayonthecloud@reddit
I have come to accept that it’s not impossible that a large part of LA, including my second home, will burn to the ground in the next 10 years. I mean like 10x what happened in the losses of Palisades, Altadena, all the affected neighborhoods.
We had an extremely narrow miss on much of Florida, while Asheville was devastated. This is going to happen more and more.
There’s no insuring this scope of tragedy. The economy and government are out of their depth on this.
I am hiding in my small corner of the US that is relatively safe from climate crisis weather. And yet there was a time when I had to mask up from wildfires in Canada. I am nowhere near the Canadian border, I’m several states away.
Sorry to all my collapseniks in the line of… well literally in the line of fire in many cases, like my family in San Francisco.
Jim-Jones@reddit
US home construction standards are very inadequate. They need a real upgrade.
cast_iron_cookie@reddit
Well money is fake(tool for rich people to buy toys)
Once it's digital, it's all fake
Good luck proving anything
Judas pulled from the money bag
DiscardedMush@reddit
It's mostly digital already. Do you get your paychecks in cash? Pay your bills with cash?
I wonder how long before the dollar is replaced with Trumpbux.
cast_iron_cookie@reddit
That's what I mean
It gets worse from here on out
Elon did say something about 2029 about not working or something
Idk
They have to crash the economy to usher in something new
DiscardedMush@reddit
Yes, but what?
These people project all the time. If he says 2029, it would be smart to be concerned.
cast_iron_cookie@reddit
Good point Could be this year
China already has the system will we using
Also, watch the movie "In Time"
StatementBot@reddit
The following submission statement was provided by /u/saaggy_peneer:
this content is collapse related as it is about the difficulty of insuring things like buildings as the world is collapsing due to more fires, hurricanes, etc
opening paragraph:
I ask the question, "is the world becoming uninsurable?" not as an expert on the insurance industry but as a homeowner who can no longer obtain hurricane insurance, and as an observer of long-term trends keenly interested in the way global risks pile up either unseen, denied or misinterpreted until it's too late to mitigate them.
Please reply to OP's comment here: https://old.reddit.com/r/collapse/comments/1i3kdu8/is_the_world_becoming_uninsurable/m7nkzss/
saaggy_peneer@reddit (OP)
this content is collapse related as it is about the difficulty of insuring things like buildings as the world is collapsing due to more fires, hurricanes, etc
opening paragraph:
I ask the question, "is the world becoming uninsurable?" not as an expert on the insurance industry but as a homeowner who can no longer obtain hurricane insurance, and as an observer of long-term trends keenly interested in the way global risks pile up either unseen, denied or misinterpreted until it's too late to mitigate them.
StatementBot@reddit
As a final reminder, your post must include a valid submission statement within 30 min. Your post is missing a submission statement.
Submission statements must clearly explain why the linked content is collapse-related. They should contain a summary or description of the content and must be at least 150 characters in length. They must be original and not overly composed of quoted text from the source. If a statement is not added within thirty minutes of posting it will be removed.
Please message the moderators if you feel this was an error. Responses to this comment are not monitored.