European companies cause problems with Florida insurance: Byron Donalds

The representative byon Donalds said that part of the reason why Florida increases insurance premiums is that European reinsurance companies take the risk of climate change into account.

Newsweek has submitted to Donald's press office for a comment by e -mail.

Why is it important

In 2024 there were 27 individual weather and climate disaster, which, according to the National Oceanic and Atmospheric Administration (NOAA), caused compensation of at least 1 billion US dollars.

With increasing climatic astes in recent years, house insurance companies have had to increase premiums. A study by the National Bureau of Economic Research showed that the average premiums rose by 33 percent between 2020 and 2023 and will only increase and increase the costs for homeowners.

What to know?

Donalds, a Republican in Florida, was recently interviewed in an episode by Rich Valdés'. America at night. Among other things, they discussed the deterioration insurance market in Florida.

“It's a real problem in Florida,” said Donalds. “Premiums continue to rise year after year.”

According to Donalds, one of the reasons why the increasing insurance premiums are “trying to” praise in the climate change risk “.

Donalds added that the risk of climate change was “impossible to quantify”, but nevertheless found his way into the calculations for insurance premiums.

“It's a big problem,” he said. “Many people have to get to the table, a lot of work has to be done.”

Geography professor of the University of Arizona, Beth Tellman, the chief scientist and co-founder of Floodbase, told Newsweek that all insurance companies praise the risk of climate change for their premiums and not only in European companies. It is a necessary measure if insurance companies want to remain financial solvents, she said.

“All insurance companies want to and have to do this for their own financial stability,” said Tellman. “It's not just reinsurance companies in Florida.”

What people say

Representative byon Donalds in an interview with Rich Valdés: “Basically, you need many insurance providers in every economy who enter into and write a guideline. Then you will achieve price stability through the economic engine because various airlines compete for the company.

“For a long time in Florida, we really hurt us in Florida that we didn't have enough carriers for our state.”

Geography professor of the University of Arizona, Beth Tellman, told Newsweek: “Climate change definitely increases insurance costs and will continue to do so for every risk. However, it is not optional for insurance companies to evaluate it or not if you want to remain financially.

What happens next

Since climate change further increases the natural disasters across the country, the insurance premiums will continue to increase. Tellman said the best way to reduce insurance costs is to reduce better building regulations, zone division and “primarily reduce exposure”.

“Investments in risk reduction are the greatest way to reduce insurance costs,” she said. “Unfortunately, climate change will make things more expensive.”