Weather and Natural Disasters

The $5 trillion global insurance industry's natural disaster problem

The $5 trillion global insurance industry's natural disaster problem
VIDEO9:4609:46
The $5 trillion global insurance industry's natural disaster problem

Extreme weather events are becoming more frequent, and more costly.

According to one estimate, natural disasters caused about $340 billion in damage across the world in 2017. And insurers had to pay out a record $138 billion. The $5 trillion global insurance industry plays a huge role in the U.S. economy. Insurance spending in 2017 made up about 11 percent of America's GDP.

So, how will insurance companies remain profitable in an era of climate change? And what does that mean for the rest of us?