Climate risks are already destabilizing insurance markets and threatening Americans’ financial security

JEC news:

WASHINGTON, DC – Senator Martin Heinrich (D-NM), Chairman of the U.S. Congressional Joint Economic Committee (JEC) and the Joint Economic Committee Democrats, today released a new report entitled: “Climate risks are already destabilizing and threatening insurance markets Security of Americans. “Financial Security.”

The report highlights the impact that climate change is already having on the financial well-being of individual American families, public and private insurance markets, local governments, and the entire financial sector.

“Climate change poses not only a threat to our planet, but also a real threat to our financial well-being. Wildfires, floods and hurricanes – and the risk of future climate disasters – impact property values ​​and the insurance market, creating portfolio risks that can impact pensions and mutual funds,” Heinrich said. As more data and analysis allows us to assess these risks more accurately, it is critical that policymakers ensure that financial markets can take them into account in their decision-making.”

The report calls for updated economic modeling to better account for climate risks and inform policy decisions, as well as innovations in insurance, risk sharing and AI to continue to protect economic assets in the future.

The full report can be found online Here.