This post is by Sheryl Canter, an online writer and editorial manager at Environmental Defense Fund.
Climate change is already happening. If you don't believe it, just ask anyone in the insurance industry, which has been bearing most of the costs. Insurance companies are scrambling to contain their exposure by hiking deductibles, limiting coverage, and often pulling out of risky markets altogether (see my previous post, "Insurance Coverage Crumbles in Coastal States").
This week, ClimateWire reporter John Fialka published a report on how climate change may shrink the insurance industry, and the "seismic economic shock" this would deliver to homeowners and businesses. He says that one solution under discussion is for the federal government to act as a backstop, shielding the private insurance industry from risk.
But that's a bad idea – for two reasons.