But as is often the case when it comes to apocalyptic warnings related to climate change, real-world data doesn’t support the narrative.
In reality, the insurance industry, which provides coverage related to hurricanes, fires and other extreme events, is enjoying a streak of record profits. //
In the second half of 2025, things got even better, thanks in large part to hurricanes missing the United States for the first time in a decade.
S&P Market Intelligence announced of third quarter results, “For US P/C insurers, it just doesn’t get any better than this . . . the US property/casualty insurance industry had its best quarter in at least a quarter of a century—and maybe longer.”
The industry’s bountiful financial results of 2025 follow its most profitable year in at least a decade in 2024, according to the NAIC. //
Starting about a decade ago, the industry’s regulators began raising alarm about the possible effects of changes in climate on banking and finance. //
As far as the actual effects of changes in climate on expected annual losses in the insurance industry, Verisk, a catastrophe modeling firm long pre-dating the “climate risk” industry, estimates an annual impact of just 1%.
Insurance companies have spent many decades estimating risk. Perhaps regulators should allow them to come to their own conclusions, rather than insisting they use dodgy science and charge customers even more.
