On the recordJune 20, 2024
I am back with my trusty, battered ``Time to Wake Up'' chart, and the last time I spoke on the Senate floor on this subject, I reviewed some recent warnings from the Economist magazine, from the Potsdam Institute, and from the consulting firm Deloitte that climate change is poised to cause tens of trillions of dollars in damage around the world--tens of trillions of dollars. Much of it, of course, right here in the United States. Well, not surprisingly, the insurance industry has concern about forecasts of damages in the tens of trillions. The Senate Budget Committee recently held a hearing examining insurance, property, and mortgage markets in Florida, a State that is on the leading edge of climate-related risks. Insurance, property, and mortgage markets are intertwined. To buy property, most people need a mortgage. To get a mortgage, you need insurance. In our hearing, Dr. Ishita Sen, a professor of finance at the Harvard Business School, told about the danger to Fannie Mae and Freddie Mac, our Federal mortgage giants. They require insurance from insurers that have a financial strength rating from a ratings agency, to assure that the mortgages they purchase are protected by reputable, financially solid insurers. Bad insurance increases their risk of homeowner default, as homeowners are way more likely to walk away from properties if their insurance company can't pay claims or won't pay quickly. Dr. Sen's research in Florida found several disturbing things.…
