Insurance Industry: 4 on Dubiosity Scale

Contrary to political posturing, there are more than two positions on the climate change issue. There are political conservatives who accept anthropogenic climate change, but prefer using market forces to address the problem. These individuals rate a 4 on my Dubiosity Scale (1 is the most dubious).

According to an article in the NY Times by Eduardo Porter, the US insurance industry may also rate a 4. It accepts the scientific consensus position, but is reluctant to engage in political squabbles, because the threat of punitive regulation is a bigger risk than increased payouts due to worsening weather:

Yet when I asked Mr. Nutter what the American insurance industry was doing to combat global warming, his answer was surprising: nothing much…Instead, the focus of insurers’ advocacy efforts is zoning rules and disaster mitigation. – Eduardo Porter

Porter summarizes the position of a 4 on the Dubiosity Scale in his last sentence:

And that’s the best hope for those concerned about climate change: that global warming isn’t just devastating for society, but also bad for business. –Eduardo Porter

But, what happens when the issue is so politicized that the market forces are responding to the politics and not the market?

Author: Josh Witten

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