A little bird is signaling a major problem -- and that bird is the insurance industry

As the cost of insuring our houses escalates around the United States and the world, it appears that property insurance is acting like a canary in a coal mine.

Canaries used to be taken into coal mines because they served as an early warning system if dangerous gases were building up. Since the canaries were more sensitive to these gases than people, they protected the miners from life-threatening conditions. When the canary dropped dead, the miners could still get out.

Like the canaries, the actuaries who interpret data for insurance companies are more sensitive than most individual people to changes going on in the world. Actuaries earn big salaries because the financial health of their employers depends on them.

Things have already gotten so bad that the National Academies of Sciences, Engineering, and Medicine (NASEM) recently sponsored a webinar panel discussion: “Extreme Weather Events and Insurance: Households, Homeowners, and Risk.”

https://www.alternet.org/property-climate/