Insurers Look To Shift Liability, Costs, Of Natural Disasters

Class action suits filed by Farmers Insurance against 200 Chicago-area communities, alleging local governments have failed to properly prepare for increased rain as a result of climate change, may signal a new strategy by insurers in the face of natural disasters. “Transferring even a portion of these costs to government would create an enormous burden, one that would be impossible to sustain,” writes commentator Lucien G. Canton, but he adds that insurance companies’ changing perspectives on liability may be just the incentive that communities and businesses need to get serious about taking steps in advance of disasters to mitigate potential damage.