Treasury Secretary Janet Yellen has emphasized the serious economic implications of climate-related disasters, noting a significant increase in the number of declared disasters compared to previous decades. In her statement, she pointed out that the recent wildfires are part of a broader trend affecting Americans' access to affordable insurance coverage, with rising costs threatening long-term financial stability for families.

 

The report indicates that nonrenewal rates for insurance in high-risk areas are approximately 80% higher than in less risky regions. Insurers are facing increased claims, with average payouts in high-risk areas reaching $24,000 compared to $19,000 in lower-risk zones. In the Southeast, states like Florida and Louisiana are experiencing claim frequencies 20% above the national average due to frequent hurricanes.

 

Yellen's remarks underscore the urgent need for addressing the financial burdens posed by climate change, as both homeowners and insurers navigate the challenges of escalating costs and increasing frequency of natural disasters.