ABSTRACT

Climate Change: Better Management of Exposure to Potential Future Losses Is Needed for Federal Flood and Crop Insurance, Report to Congressional Requesters   [open pdf - 3MB]

"The May 2014 National Climate Assessment indicates that the frequency and/or severity of many weather and climate extremes may increase with climate change. Public and private property insurers can bear a large portion of the financial impact of such weather-related losses. In the public sector, federal insurance includes NFIP [National Flood Insurance Program], managed by FEMA, and the federal crop insurance program, managed by RMA [Risk Management Agency]. GAO [Government Accountability Office] was asked to review climate change's effect on insurers. This report examines (1) how federal and private exposure to losses has changed since GAO's 2007 report on the subject, and what is known about how climate change may affect insured and uninsured losses; (2) how public insurers are preparing for climate change, and any challenges they face; and (3) how private insurers are preparing for climate change and any challenges they face. GAO reviewed 20 studies, examined federal and private sector data on exposure to losses from 2000 to 2013, reviewed agency documents, and interviewed agency officials and a nonprobability sample of eight insurers and reinsurers. "

Report Number:
GAO-15-28
Publisher:
Date:
2014-10-29
Copyright:
Public Domain
Retrieved From:
Government Accountability Office: http://www.gao.gov/
Media Type:
application/pdf
URL:
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