Rising Insurance Costs: Climate Change's Impact on Your Wallet

Insurers are facing challenges due to the increasing frequency and severity of extreme weather events linked to climate change. As property insurers pull out of high-risk areas, travel insurance is experiencing a boost in demand as travelers seek coverage for trip cancellations, lost luggage, and delays. The travel insurance market has grown significantly since 2020, with a 410% increase in sales compared to 2020 and a 126% increase compared to 2019. The rise in extreme weather events has led to big losses for insurers, resulting in higher costs for policyholders. However, travel insurance consumers have not yet experienced significant price hikes. The disruptions in the insurance industry are also attracting new insurtech startups and prompting incumbent insurers to adjust their offerings.