Does it seem like there has been more extreme weather lately? The Insurance Industry says yes. Industry regulators say the payout on claims for wind and hail damage to homes and businesses in South Dakota has increased in recent years – so much so that some premiums are going up. SDPB’s Charles Michael Ray found out that the insurance industry is reevaluating its risks due to extreme weather.
South Dakotan’s are used to extreme weather. If you live here there is a good chance you have a story about a big hail or wind storm you’ve witnessed. Joshua Andersen works with the South Dakota Division of Insurance in Pierre. He says the numbers show the payout for these sort of storms is on the rise over the last few years-this means the insurance industry has to adjust.
“For a purely dollars and sense standpoint we can tell that those losses from hail and wind specifically are higher than they used to be and rates are reflecting that going forward,” says Andersen.
A recent article in Forbes Magazine outlines the challenges in the insurance industry due to climate change and the increasing trend of extreme weather. Climate experts say insurance industry data quantifies the impacts of climate change and relates it to the pocketbooks of average Americans.