West Virginia Adjusters Practice Exam

The selected option highlights a significant effect of climate change on insurance claims. Climate change is associated with a rise in the frequency and severity of extreme weather events, such as hurricanes, floods, wildfires, and droughts. These weather-related disasters directly lead to an increased number of insurance claims, as property damage and loss become more common due to the changing climate patterns. Insurers must respond to these heightened risks, which in turn drives up the volume of claims as policyholders seek compensation for the damages incurred.

As more weather-related disasters occur and their impacts become more severe, insurance companies face the challenge of assessing an ever-growing number of claims. This can strain their resources and may lead to increased premiums and a reevaluation of risk assessments in the insurance industry. Understanding this relationship underscores the importance of adapting insurance policies and practices in light of ongoing climate variability.