Report Warns 'Today's Climate Crisis Is Tomorrow's Banking Crisis'

Insurance companies facing bankruptcy due to climate disasters are a warning sign of an impending banking crisis, and urgent action is needed from regulators to prevent financial crashes and costly bailouts.

commondreams.org

Relevant topic timeline:

8/24/2023

Utilities Are Becoming a Risky Business Thanks to Climate Change

Investor-owned utilities in wildfire-prone areas are facing increasing financial risks and potential bankruptcy due to damages caused by wildfires, highlighting the need for investors to reassess climate-related risks and for businesses to adapt their operations to mitigate such risks.

8/26/2023

Are We Ready for a $100 Billion Catastrophe? How About $200 Billion?

Insurance companies are struggling to keep up with the rising prevalence of natural disasters and the potential for catastrophic losses.

8/30/2023

How to buy a home insurance policy in era of climate risk and more frequent disasters

Frequent weather catastrophes, fueled by climate change, are causing disruptions in the home insurance market, with insurers pulling out of high-risk areas, raising prices, and reducing coverage, leading to tougher choices and higher costs for consumers.

8/30/2023

Visualizing the World's Growing Millionaire Population

The number of U.S. corporate bankruptcies is increasing at the fastest rate since 2010, with over 400 companies filing for bankruptcy in 2023, double the level compared to the same time last year, due to overstretched balance sheets and rising interest rates. Firms in the consumer discretionary and industrial sectors are the hardest hit, and there have been 16 billion-dollar bankruptcies, including Bed Bath & Beyond and Silicon Valley Bank's parent company. However, some companies have managed to weather the storm by cutting costs or raising prices, and the structure of corporate debt and lending practices have provided some resilience. Nevertheless, the significant debt accumulated during the pandemic will pose challenges in the future.

8/30/2023

Climate change raising risks of financial disaster for homeowners, insurers and bankers

The increasing risks of extreme weather events from climate change are causing insurance companies to raise rates and pull back from high-risk areas, which could potentially lead to losses for banks that rely on insurance-backed collateral for loans.

9/8/2023

Surge in Small Business Bankruptcies Hints at Economic Troubles Ahead Despite Upbeat Data

Rising U.S. business bankruptcies are causing concern despite strong economic indicators, potentially impacting the overall economy and smaller firms in particular.

9/12/2023

Economist Warns Surge in US Corporate Bankruptcies Could Signal Major Economic Crisis

US economist Stephanie Pomboy has issued a warning about the economic risks posed by the increasing number of corporate bankruptcies in the country, which she believes could surpass the magnitude of the 2008-2009 financial crisis. Pomboy emphasizes that many market participants have not fully grasped the gravity of the situation and calls for a significant fiscal and monetary response to address the issue.

9/20/2023

Climate Change Drives Up Insurance Costs and Availability in Florida as Extreme Weather Risks Rise

A new study warns of a looming "climate insurance bubble" in Florida, which could result in rising insurance rates and declining property values due to the increasing risks of hurricanes and other climate-driven disasters.

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Posted 8/23/2023, 6:02:56 PM

Report Warns 'Today's Climate Crisis Is Tomorrow's Banking Crisis'

commondreams.org

Relevant topic timeline:

8/24/2023

Utilities Are Becoming a Risky Business Thanks to Climate Change

8/26/2023

Are We Ready for a $100 Billion Catastrophe? How About $200 Billion?

Insurance companies are struggling to keep up with the rising prevalence of natural disasters and the potential for catastrophic losses.

8/30/2023

How to buy a home insurance policy in era of climate risk and more frequent disasters

8/30/2023

Visualizing the World's Growing Millionaire Population

8/30/2023

Climate change raising risks of financial disaster for homeowners, insurers and bankers

9/8/2023

Surge in Small Business Bankruptcies Hints at Economic Troubles Ahead Despite Upbeat Data

Rising U.S. business bankruptcies are causing concern despite strong economic indicators, potentially impacting the overall economy and smaller firms in particular.

9/12/2023

Economist Warns Surge in US Corporate Bankruptcies Could Signal Major Economic Crisis

9/20/2023

Climate Change Drives Up Insurance Costs and Availability in Florida as Extreme Weather Risks Rise