The climate activist group “Center for Climate Integrity” released a report stating that if State Farm’s rate increase application is approved, the average premium for California homeowners in 2026 will increase by $1,015 compared to 2023. Previously, the company had been granted permission to increase the rate by 17% in 2025, resulting in an average premium increase of $737. The report indicates that wildfire high-risk areas such as Calabasas (Los Angeles County) have seen the highest increase in insurance premiums, with some homeowners having to pay an additional $6,832 (68%). The organization criticized fossil fuel companies for pushing up climate risks without taking corresponding responsibilities.
A report by climate leadership Ceres shows that 99% of insurance companies have disclosed climate-related risk management information, but only 29% have set quantifiable targets. The report emphasizes that despite the majority of companies taking countermeasures, some institutions still pass on costs by withdrawing from high-risk markets or significantly raising prices, exacerbating market tensions. Fitch Ratings has warned that extreme weather is changing mortgage risks and that climate factors should be incorporated into credit assessments, such as the case where the Swiss glacier melting event led to asset values dropping to zero.
The Center for American Progress reports that global warming has led to stronger, more frequent and destructive hurricanes escalating. Warm seawater provides more energy for storms, causing the frequency of major hurricanes in the United States to triple compared to a hundred years ago and doubling the proportion of strong hurricanes in the Atlantic since 1980. The continuous rise in deaths, property losses and community reconstruction costs caused by hurricanes highlights the urgency of the climate crisis.
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