Senate Report Blames Climate Change for Insurance Challenges as Industry Pushes Back

A recent Senate Budget Committee hearing spotlighted a contentious debate over the impact of climate change on rising insurance non-renewal rates. The committee’s study, based on data from 23 major insurers between 2018 and 2023, concluded that climate-related factors are driving instability across U.S. insurance markets, extending beyond high-risk states like Florida and California to regions including the Carolinas, New England, and Hawaii.

Senator Sheldon Whitehouse (D-R.I.) called the findings alarming, warning of an ongoing and worsening "insurance crisis." However, industry leaders like Robert Hartwig, a risk management professor, argued the data exaggerates the role of climate change, attributing challenges to broader issues such as inflation, litigation, and population growth in risk-prone areas. Others, including NAMIC’s Jimi Grande, criticized the committee for oversimplifying the crisis and ignoring economic and policy factors that amplify costs for insurers and consumers alike.

The report has also drawn scrutiny from the National Association of Insurance Commissioners, which flagged potential data inconsistencies. Industry leaders emphasize that while climate change is a factor, it is not the sole or even dominant cause of rising insurance pressures, pointing instead to a complex web of economic and regulatory issues.