Six Things 11.12.24
Insurance Thought Leadership
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What Trump 2.0 Means for Climate Initiatives
Paul Carroll, Editor-in-Chief of ITL
While the insurance industry has, to its great credit, been leaning into initiatives to make people and their property more resilient in the face of climate change, last week's U.S. presidential election means the regulatory environment will be significantly different, come Jan. 20.
Donald Trump has long referred to the "climate hoax" and has called President Biden's big climate-related law the "Green New Scam." Trump will surely withdraw the U.S. from the Paris climate accord, as he did during his first term, and may even do so through an executive order on his first day in office. Backed by considerable oil and gas money, the president-elect has promised to "drill, baby, drill." So any regulatory support for reducing emissions and slowing climate change will be out the window.
But all is not lost for those of us who see climate change as one of the great challenges of our time. Trump won't necessarily block efforts to strengthen buildings and infrastructure in the face of intensifying storms — as long as the justification never mentions the word "climate." States and local governments will soldier on, in any case. Market forces will also keep driving progress, especially for electric vehicles, albeit more slowly, and for property resilience. And institutional inertia and legal challenges likely mean Trump won't be able to accomplish some of the more extreme measures being urged on him by conservative groups, even though Trump 2.0 is heading into office with much more experience and a more detailed plan than Trump 1.0 had eight years ago.
I can't claim a crystal ball, but I'll lay out a few thoughts concerning how the shift in the federal approach to climate will affect the insurance industry and how we can play a key role over the next four years.
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🌱 insurance professional leveraging data-driven strategies for optimal risk mitigation. Let's explore insurance possibilities. #RiskManagement 📈🛡️
3wFor #insurers and #governments, close #collaboration is key to tackling #climate_risks. By sharing #data, we can better understand #potential_threats. Being #flexible and using new #tech is key to keeping up with #regulations and staying competitive.We have to respond quickly, creating a safer #world.