Insurance

NYT: Fewer Americans have flood insurance today than 10 years ago

Scott Olson. Photo: Getty Images

Despite an onslaught of extreme weather events that have barraged American homes in recent months and years, the New York Times reports that the number of Americans with flood insurance has dropped during the last decade.

Why it matters: As climate change will only increase the likelihood of floods, insurance rates are expected to surge. Beyond floods, in California, officials have tried to curtail rate bumps in regions at risk of wildfire, and also tried to discourage insurance providers from dropping policyholders.

Expert Voices

Insurance for AVs will rely on sophisticated AI

A car with a price tag bearing binary code
Illustration: Lazaro Gamio/Axios

The insurance industry is learning how to incorporate artificial intelligence in various scenarios to determine liability and calculate risk, including AVs, where the responsibility for malfunctions and accidents could fall on safety drivers, on the vehicle manufacturer, or on software and hardware providers.

Why it matters: Insuring AVs is an unprecedented insurance challenge, as they will generate huge volumes of data from a variety of parts and will be comprised of complex systems that share responsibility in interlocking ways.