New data from the National Oceanographic and Atmospheric Administration (NOAA) shows that through just the first three quarters of 2022, the US has experienced 15 “billion-dollar natural disasters,” more than double the historical average of seven events per year. This makes 2022 the 8th year in a row in which the US has experienced at least 10 billion-dollar disasters.

In total, 2022’s weather disasters totaled $29.3 billion in damages before September saw a rash of western wildfires, as well as hurricanes Ian and Fiona. Already, Ian has proved to be one of the costliest storms in US history, and the deadliest hurricane in Florida since 1935. Early estimates place the storm’s devastation at $67 billion, meaning that once it's tallied, the 2022 economic disaster toll through the end of September will likely exceed $100 billion.

Why This Matters

Climate change is only getting more destructive and expensive by the year. New CDP data shows that four out of five cities across the world, or 80%, are facing climate hazards in 2022. Across the world, global warming has contributed to this year’s catastrophic flooding, rainfall, drought, and heat waves. In Nigeria, devastating floods this month have killed more than 600 and displaced 1.4 million. And, in Australia, the wettest year on record caused floods that have killed 20. These disasters have destroyed farmland, city infrastructure, and residences, racking up a massive economic and human toll. Increasingly, too, they are disrupting children’s education, with storm damage to school buildings keeping kids out of the classroom for months on end.

These events will only worsen if the world doesn’t cut its emissions. A study from last month found that the world has warmed by 1.1 degrees Celsius, which means that five of the nine crucial climate tipping points have already been reached. Moreover, a different study from the WMO projects a 48% chance that global temperatures will rise 1.5 degrees C compared with pre-industrial times over the next five years.

A Looming Insurance Crisis

Expensive disasters are not just occurring more frequently, but also with less time in between each one, leaving extreme-weather-prone areas unable to keep up. This state of affairs is roiling the insurance industry, which is struggling to compensate homeowners for damages. In response to climate change’s increasing cost to insurance companies, they have started to push up premiums and pull out of risky areas. Coastlines across the world are becoming increasingly “uninsurable” as sea levels rise and flooding ravages coastal communities.

This is particularly bad with Hurricane Ian, which may be the single biggest insured loss ever. Florida already accounted for 79% of the nation’s insurance lawsuits, or more than 100,000 lawsuits each year. Many insurers have gone bankrupt, or backed out of the state entirely, leaving homeowners to rely on federal funding instead, with taxpayers ultimately footing the bill.

In Louisiana, too, insurance is becoming increasingly unreliable. Just this week, Louisiana Citizens Property Insurance Corporation announced it will raise rates for new and renewed residential property insurance policies by 63%. Homeowners in risky areas are seeing their rates double, with some owing an extra $3,000 per year.

In response, the US Treasury Department announced on Tuesday that it would begin collecting data to determine where climate-related risk is making property insurance inaccessible to homeowners. It marks the first time the department has gathered climate data.