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.

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Relevant topic timeline:

8/23/2023

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.

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

Consumer advisory: Take action when home insurance is cancelled or costs surge

Homeowners are facing challenges with their insurance policies, as extreme weather events and natural disasters are causing insurers to go out of business or increase the cost of coverage, leading to the need for homeowners to quickly find alternative options to avoid force-placed insurance and ensure their homes are protected.

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.

9/10/2023

Historic Disasters Fuel Insurance Woes, Leaving Homeowners With Soaring Costs and Shrinking Coverage

Deadly wildfires in Hawaii and a historic hurricane in Florida have caused significant damage and brought insurance risks to homeowners' attention, leading insurers to reconsider their risk exposure and potentially leave certain markets, creating an affordability crisis for insurance.

9/21/2023

New report finds 1 in 4 U.S. homes overvalued due to climate risks, creating 'climate bubble' that could burst

A new report by nonprofit First Street Foundation suggests that a quarter of residential properties in the U.S. are overvalued in relation to their climate risk, with homes in states like California and Florida being more vulnerable to damages from extreme weather events such as hurricanes, floods, fires, and earthquakes. The number of homes likely to be destroyed by fires each year is projected to double in the next 30 years, reaching nearly 34,000 in total, according to the research. The overvaluation of properties due to climate risk could potentially have disastrous consequences for the housing market, leading to a deflation of the climate bubble.

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Posted 8/24/2023, 5:43:38 PM

Utilities Are Becoming a Risky Business Thanks to Climate Change

time.com

Relevant topic timeline:

8/23/2023

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

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

Consumer advisory: Take action when home insurance is cancelled or costs surge

8/30/2023

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

9/10/2023

Historic Disasters Fuel Insurance Woes, Leaving Homeowners With Soaring Costs and Shrinking Coverage

9/21/2023

New report finds 1 in 4 U.S. homes overvalued due to climate risks, creating 'climate bubble' that could burst