Climate change doesn't fit the model of "insurance." It's not a low probability, high impact event that randomly affects a small subset of assets, with a low total cost relative to the whole pool of assets at risk.
It's a high probability, high impact event that affects everybody, with a high total cost relative to the value of the pool of assets at risk.
@ZaneSelvans you should have seen the consternation in a Hacker News discussion when someone suggested a fossil fuel tax to be applied to an insurance offset fund.
Noo the market should deliver a solution.
How would the market operate if the fundamental carbon pollution cost driver isn’t linked with the price?
@ZaneSelvans
Climate change will break the insurance industry before it breaks everything else.
Actuaries are the world’s oldest data scientists.
The math doesn’t lie.
They are paid to avoid #AdverseSelection.
When the risks manifest everywhere, on everything, all the time, actuarial models collapse.
Zane Selvans
Alan
Coach Pāṇini ®