Climate crisis on track to destroy capitalism, warns top insurer

[u/RunAmbitious2593]

https://www.theguardian.com/environment/2025/apr/03/climate-crisis-on-track-to-destroy-capitalism-warns-allianz-insurer

The world is fast approaching temperature levels where insurers will no longer be able to offer cover for many climate risks, said Günther Thallinger, on the board of Allianz SE, one of the world’s biggest insurance companies. He said that without insurance, which is already being pulled in some places, many other financial services become unviable, from mortgages to investments.

Global carbon emissions are still rising and current policies will result in a rise in global temperature between 2.2C and 3.4C above pre-industrial levels. The damage at 3C will be so great that governments will be unable to provide financial bailouts and it will be impossible to adapt to many climate impacts, said Thallinger, who is also the chair of the German company’s investment board and was previously CEO of Allianz Investment Management...

...Thallinger said it was a systemic risk “threatening the very foundation of the financial sector”, because a lack of insurance means other financial services become unavailable: “This is a climate-induced credit crunch.”

“This applies not only to housing, but to infrastructure, transportation, agriculture, and industry,” he said. “The economic value of entire regions – coastal, arid, wildfire-prone – will begin to vanish from financial ledgers. Markets will reprice, rapidly and brutally. This is what a climate-driven market failure looks like.”

[u/BigPickleKAM]

Actuaries know when something is a losing position in the long run. Look into life insurance back in the 50's. Those working in asbestoses related industries could not get life insurance the companies knew they would lose money.

Same thing now the insurance industry know a losing position and will continue to pull back from insuring high risk areas.

[u/cultish_alibi → u/BigPickleKAM]

Yep, the insurance industry aren't climate change deniers, they can't afford to be.

[u/Sprinkle_Puff → u/cultish_alibi]

Imagine if they used their money to fund politicians that actually wanted to fight it

[u/West-Abalone-171 → u/Sprinkle_Puff]

Why do that when you can bail on holding up your end of the bargain 8 months before shit hits the fan, and then use the premiums that you kept to buy out everything when the disaster hits for pennies on the dollar only to rent it back out when the public purse pays for reconstruction.