Insurance industry leaders say companies are shifting or pulling out of some states following disasters, fraud, policy issues, and growing climate risks.
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00:00 Families and insurance agents
00:01 across the country are facing
00:03 more rounds of extreme weather
00:06 and bigger insurance claims.
00:07 You've got inflationary pressures.
00:09 You've got climate risk pressures.
00:12 You've got more and more people
00:14 also living in harm's way.
00:17 The frequency of billion dollar
00:19 disasters and the cost of damage
00:21 have skyrocketed in recent years.
00:23 Sean Kevlin says the insurance
00:25 industry has been forced to evolve
00:28 since the 80s we've seen.
00:30 Insurance losses increased over 700%.
00:32 Insurance had traditionally been
00:33 one where it would detect and
00:35 then repair after catastrophe.
00:37 And what we say is happening right now
00:40 is it's moving towards predicting
00:41 and preventing the CEO of the
00:44 Insurance Information Institute
00:45 says some insurers are pulling
00:47 out of certain states in California.
00:49 It's not just because of the growing
00:52 wildfire risk and flooding,
00:53 but strict laws, rules and policies.
00:56 In Florida,
00:56 Kevlin says the hurricane
00:58 threat is not the only challenge.
01:00 Insurers are dealing with years
01:02 of fraud and litigation abuse.
01:04 We've got to create better
01:06 physical infrastructure so that we
01:08 can be more resilient in the future.
01:11 Families and businesses need to be
01:13 prepared and review their policies.
01:15 We're seeing hurricanes now where
01:17 they're staying inland more and
01:18 creating significant flooding in
01:20 areas of this country that have
01:23 literally less than 1% take up
01:25 flood insurance. Not enough people
01:27 have flood insurance when they need it.
01:29 For Accuweather, I'm the Waddell.
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