US Insurance Gap Widens to $3 Trillion Amid Climate Risks

The US is in a $3 trillion home-insurance hole due to increasing natural disasters fueled by global warming. State-managed insurers of last resort are expensive and limit coverage. The gap between insurance coverage and potential climate damage has been estimated at $2.7 trillion, which may be too conservative. Many are turning to non-admitted insurance lines, also known as surplus lines, which have higher premiums, lighter capital, and fewer customer protections.