The inflationary pressure of ever rising insurance

One of the challenges moving forwards is that inflation is not going to come down.

The global hegemonic free market structure has changed and the West have permanently imported inflation for geopolitical reasons.

On top of this is the never increasing cost of insurance from catastrophic climate change events that are spiking and the future is grim…

Economic damage from climate change six times worse than thought – report

The economic damage wrought by climate change is six times worse than previously thought, with global heating set to shrink wealth at a rate consistent with the level of financial losses of a continuing permanent war, research has found.

A 1C increase in global temperature leads to a 12% decline in world gross domestic product (GDP), the researchers found, a far higher estimate than that of previous analyses. The world has already warmed by more than 1C (1.8F) since pre-industrial times and many climate scientists predict a 3C (5.4F) rise will occur by the end of this century due to the ongoing burning of fossil fuels, a scenario that the new working paper, yet to be peer-reviewed, states will come with an enormous economic cost.

A 3C temperature increase will cause “precipitous declines in output, capital and consumption that exceed 50% by 2100” the paper states. This economic loss is so severe that it is “comparable to the economic damage caused by fighting a war domestically and permanently”, it adds.

…and that is not taking into account the threat from Permafrost…

Permafrost Showdown

“Deep below the glistening surface of a frozen Arctic lake, something is bubbling—something that could cause global warming to accelerate beyond all previous projections… Now the freezer door is opening, releasing the carbon into Arctic lake bottoms. Microbes digest it, convert it to methane, and the lakes essentially burp out methane.’ Scientists estimate that permafrost holds up to 950 billion tons of carbon. As it thaws, 50 billion tons of methane could enter the atmosphere from Siberian lakes alone. That’s ten times more methane than the atmosphere holds right now,” (Katey Walter Anthony, biogeochemist, National Geographic Explorer Since 2011)

Rapid warming of Arctic permafrost has brought a significant threat to all life forms. Consequently, The Royal Society (est. 1660) felt compelled to support publication of a new video that exposes this threat: What Happens When the Permafrost Thaws? BBC in partnership with The Royal Society by Daniel Nils Roberts, British-Norwegian director, April 15, 2024.

“Thermokarst lakes (formed when permafrost melts) are projected to release approximately 40% of ancient permafrost soil carbon emissions this century.” (Source: K.M. Walter Anthony, et al, Decadal-scale Hotspot Methane Ebullition Withing Lakes Following Abrupt Permafrost Thaw, Environmental Research Letters, Vol. 16, No. 3, 2021)

“The Tibetan Plateau is the largest alpine permafrost region in the world, accounting for approximately 75% of the total alpine permafrost area in the Northern Hemisphere. Similar to high-latitude permafrost regions, this region has experienced fast climate warming and extensive permafrost thaw, which has triggered the widespread expansion of thermokarst lakes and other types of abrupt permafrost thaw. The number of thermokarst lakes in this permafrost region is estimated to be 161,300.” (Source: Guibiao Yang, et al, Characteristics of Methane Emissions from Alpine Thermokarst Lakes on the Tibetan Plateau, Nature Communications 14, Article No. 3121, 2023)

Ecosystems throughout the planet are rapidly transforming because of human-generated global warming. After all, what does the formation of 161,300 thermokarst lakes in only the Alpine permafrost region alone say about the impact of global warming?

Scientists are expressing renewed concerns about monster climate events lurking beneath the frozen ground of permafrost, which is 15% of the exposed land surface of the Northern Hemisphere (MIT Climate Portal). And monsters lurk above solid grounding in Antarctic glacial formations, starting to fracture as fissures widen like ogres of the deep.

…there’s no way insurance can drop as the climate becomes more extreme, that means the rising cost of insurance will force inflation up, not down.

 

 

 

 

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