Climate Proofers: Nancy Watkins on Climate Risk and the US Insurance Industry

US home insurers suffered their worst underwriting loss this century in 2023, as claims came pouring in for storms, floods, wildfires, and more.

Inflation and the crowding of high-risk areas contributed to the red ink, but extreme weather events were also a factor. These are due to become more frequent and severe because of climate change.

Nancy Watkins specializes in climate resilience, insurtech and catastrophic property risk at Milliman, an actuarial consultancy. She joins Climate Proofers to discuss the headwinds facing the US insurance market and the resilience measures that individuals, communities, and public authorities could take to ease the emerging affordability and availability crisis.

We also examine the role of catastrophe (or ‘cat’) models in the insurance industry, and their importance in a climate-transformed world.

Listen below, download from the Podcasts page on Climate Proof, or tune in via Spotify or Apple Podcasts.

We talk about:

👉 How inflation, population density, and climate change is costing insurers

👉 How regulations have made it harder for insurers to accurately price risks in certain US markets

👉 The resilience measures that could protect communities and reduce the cost of insurance

👉 What the insurance industry does (and doesn’t) understand about cat models

👉 The tensions bubbling between private insurance and public officials

Future guests include Alex Kennedy of Standard Chartered, Sonam Velani of Streetlife Ventures, and Rowan Douglas of Howden.

Like what you hear? Then make sure to follow the pod and consider leaving a review!

Thanks for listening!

Louie Woodall
Editor