The argument over whether we’re in for global warming or global cooling and whether what’s coming is natural or human-made is fun but totally irrelevant from a financial perspective. The fact is that for whatever reason and in whatever direction, the climate is getting more aggressive. Monster snowstorms and apocalyptic fires are clearly becoming more common:
Combine the rising number of bad things nature is throwing our way with the fact that millions more people are choosing to live in places with the highest propensity for those bad things, and you get yet another addition to the average family’s cost of living: soaring insurance premiums.
Phil’s Stock World recently published an analysis by University of Michigan professor Andrew Hoffman that expands on the connection between nature and insurance: