How might climate change impact insurance claims?

Climate change has a significant impact on insurance claims primarily due to its effects on weather patterns. As climate change leads to a rise in extreme weather events, such as hurricanes, floods, wildfires, and severe storms, the insurance industry has seen an increase in claims related to these disasters.

When discussing the frequency and severity of weather-related claims, it's important to recognize that more intense and frequent weather events lead to higher damages and losses for policyholders. This results in increased claims being filed as individuals and businesses seek compensation for their losses. Insurers must then prepare for the financial implications of these rising claims, which can affect underwriting practices and premium calculations in the future.

The other options presented do not accurately reflect the realities associated with climate change and its influence on insurance claims. For instance, while theft claims are generally unrelated to climate change, claims may indeed rise due to weather-related damages. Similarly, climate change would likely increase, not decrease, insurance premiums due to the heightened risk. Lastly, as claims from weather-related events grow in number and value, it is unlikely that the overall trend would be a reduction in claims being filed.