Climate Change Wreaks Havoc on Insurance Industry as Extreme Weather Drives Up Costs and Disrupts Travel

Extreme weather linked to climate change is disrupting insurance models and increasing losses for property insurers. Many are pulling out of high-risk areas.

Travel insurance purchases are up significantly, partly due to more expensive and disrupted trips. Customers want protection against cancellations.

More natural disasters mean higher claims and costs for insurers, who pass on price hikes to policyholders. This hasn't happened much in travel insurance yet.

New insurance startups are emerging to take advantage of industry disruption, offering cheaper rates initially. Overall investment into insurtech is growing.

Insurers are adapting travel policies by adding more covered reasons for cancellation and higher benefit levels. New startups offer niche weather coverage for specific trip types.