The Climate Crisis Domino Effect

The report examines how the increasing frequency and severity of climate-driven disasters lead insurance companies to raise premiums or withdraw coverage, particularly in high-risk areas of the US. This process creates a 'domino effect' where the lack of affordable insurance makes homes unmortgageable, reduces property values, and increases homelessness. The authors highlight a cycle where insurers profit from these increases and reinvest in fossil fuels, further exacerbating the climate crisis. The document warns that widespread mortgage defaults and the devaluation of lender security could lead to a systemic financial crisis with global implications.

• Insurance companies are responding to climate-induced weather events by increasing premiums and non-renewing policies, which the authors describe as a cycle where insurers recoup profits from customers and reinvest them into fossil fuel companies, further exacerbating the climate crisis.
• The insurance crisis is severely impacting housing affordability and stability in the US. Homeowners in California may see property values drop by 12 to 39 percent upon receiving a nonrenewal notice, and the nonrenewal of over 100,000 policies could result in property value losses between $9.87 billion and $32.1 billion.
• The crisis extends to renters and affordable housing providers. Landlords are passing insurance costs to tenants, contributing to a 24 percent average rent increase over three years. Additionally, 29 percent of affordable housing providers saw premium increases of at least 25 percent for 2022–23 renewals.
• There is a significant risk of a systemic financial collapse triggered by climate risk. The authors argue that the inability to secure insurance makes homes unmortgageable, which can lead to mortgage defaults, crashed property markets, and a broader economic crash.

APA

Fenlock, L., Slidders, C., & Reisch, N. (2024). The Climate Crisis Domino Effect. Center for International Environmental Law. https://www.ciel.org/climate-crisis-domino-effect/

Chicago

Fenlock, Lindsay, Charles Slidders, and Nikki Reisch. The Climate Crisis Domino Effect. Center for International Environmental Law, 2024. https://www.ciel.org/climate-crisis-domino-effect/.

Wikipedia

{{cite report |last1=Fenlock |first1=Lindsay |last2=Slidders |first2=Charles |last3=Reisch |first3=Nikki |title=The Climate Crisis Domino Effect |publisher=Center for International Environmental Law |date=23 July 2024 |url=https://www.ciel.org/climate-crisis-domino-effect/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fenlock2024climate, author = {Fenlock, Lindsay and Slidders, Charles and Reisch, Nikki}, title = {{The Climate Crisis Domino Effect}}, institution = {Center for International Environmental Law}, year = {2024}, month = jul, url = {https://www.ciel.org/climate-crisis-domino-effect/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }