If you listen to President Trump he denies there is climate change and but the reality is there is one industry that whether you believe in climate change or not, will charge you more – the insurance companies. Everyone needs insurance of one sort or another, sometimes it is mandated such as if you own an automobile, you need insurance to get your license to drive it. If you have a mortgage you need insurance to protect the bank. There are many other examples of insurance such as pet insurance, health insurance, but you know that very few insurance companies lose money. The insurance go into the reinsurance market to make their risk even smaller.

In an article by Pritam Biswas of Reuters, the largest reinsurance company in the world Swiss Re released a report that annual global insured losses from natural catastrophes are expect to hit $107 billion. The US stood as the most affected market in 2025, accounting for 83% of the global insured losses.

Insured losses from natural catastrophes topped $100 billion for the 6th straight year. The insurance companies has focused on tighter underwriting, higher premiums and examining risk models.

Jerome Jean Jaegeli, Swiss Re’s group chief economist, note reinsurers and the broader insurance sector has a dual role: acting as a financial shock absorber and supporting the development of resilient, risk-informed public policy and private investment that reduce future losses.

The good news, the first half of 2025 produced $80 billion in losses and the second half of $25 billion was less than the $150 billion was which projected to happen.

Rising climate risks are prompting insurers to pull back from high-risk areas across the US widening coverage gaps and increasing financial pressure on vulnerable communities.

In some areas, limited government insurance is the only product available, as private insurance premiums are too high for the average person.

2025 was a low from hurricane losses as few hurricanes made landfall on the US coast.

Linking to dividend paying stocks, when someone talks about a subject, all you need to do is verify if the insurance with the subject is going up or down. The insurance companies have the best modelers in the industry and they do not like to pay out too much in compensation, if they do higher premiums for everyone is the result, whether you are high or low risk. Insurers pay a role in the economy, but lowering costs is rarely one of them.

There are more questions than answers, till the next time – to raising questions.