Friday, 09 August 2024.
This week we published articles about the pressure of climate change in the insurance industry, considering the consequence on our lives, from poor to developed countries.
Among the references of the 4 articles - listed at the end of this post - hearings from a Committee from the United States Senate, basically qualifying and quantifying the reduction of insurance coverage in certain regions, due to extreme weather events.
Today we will add some more perspective from the United States, some other impacts of higher temperatures on people’s lives.
We refer to a 6 pages analysis published by Bank of America Institute last April 2024, entitled “Feeling the heat“, with the following topics:
High heat exposure leads to high household expenditure
Lower-income customers and households in the West are sweating the most
Heat-exposed industries risk labor losses
High heat, high economic costs
More specifically, we quote ipsis litteris the 3 key takeaways:
Higher average temperatures put over half of U.S. counties at risk for increasing energy consumption costs and associated expenses such as utility payments. As of March, the average total utility payments per customer was nearly US$ 300 per Bank of America internal data, a nearly one-quarter rise in cost since 2019.
Many households are impacted by climate hazards, but certain households are particularly susceptible to experiencing financial strain. Lower-income customers' average utility payments are 38% higher in March than the 2019 average, and people in the Northeast and West are facing increasing financial pressure.
Rising temperatures are also taking a toll on workers, especially those working outdoors in heat-exposed industries. Bank of America internal data finds, during warmer months, heat-exposed sectors have a lower inflow-to-outflow ratio, which we view as a proxy for profits. Long-term, high heat could reduce available jobs in certain sectors, amplifying economic costs.
Click at the image below if interested in reading more about this article from Bank of America Institute.
Bank of America Institute analyzes the bank’s proprietary data to develop a deep understanding in near real time of consumer behavior and the economy. As such, an important reference of findings to be considered by governments and corporate leaders, small business owners and investors.
Last but not least, as indicated, the other articles from this week.
