HOW TO PROTECT YOUR PROPERTY FROM INCREASINGLY EXTREME WEATHER EVENTS The entirety of the insurance industry is based on identifying, managing, and mitigating one thing: Risk. What poses the greatest risk to any given property? The answer varies between industries, but it is one of the fundamental questions that must be answered by the professionals that assess risk and design policy coverages. They investigate and identify key trends that are likely to either shape or impact the insurance industry in the future so that insurers can be prepared for the types of claims they are likely to see. Mitigating potential losses is the most crucial component to keeping insurance premiums down and keeping coverage options broad so that affordable insurance policies are accessible to the general population. This will come as a shock to no one, but the
One of the most prominent emerging risks the insurance industry has studied is the effect that climate change has had on covered causes of loss. Unpredictability of extreme weather events has made it increasingly difficult for insurers to assess and mitigate weather-related risks and has challenged existing methods for regulating insurers’ investment practices.
insurance industry is a for-profit industry. Insurers are one of the leading industries that must do a deep dive into what possible risks are likely to impact their bottom line in years to come to financially prepare to pay out such claims, all while keeping themselves afloat to pay out claims from the next disaster.
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