Oil companies, and their wholly-owned subsidiary, the Republican Party, are fond of claiming that we can't afford to stop global climate change. What they fail to point out is that there's a terrible cost to NOT addressing global climate change. As today's EEI newsletter notes:
Gulf Gas Producers Paying Higher Insurance Rates After Katrina
Natural gas producers operating in the Gulf of Mexico have seen their insurance rates for the 2006 hurricane season increase by up to four times in the wake of hurricanes Katrina and Rita, Dow Jones Newswires reported. Along with sharply increasing their rates, Gulf insurers have replaced the former standard of unlimited coverage for damages with policies that feature limited damage claims. Some insurance brokers have predicted that rates for 2007 will decline as gas companies seek price cuts and more coverage following a 2006 hurricane season that has seen little storm activity, so far.
The chief economist at the Insurance Information Institute is quoted as saying that, insurers will seek to maintain their higher prices and limited coverage going forward. Hartwig said: "Risk has increased, and the price will have to reflect that. I would expect the relatively high pricing, terms and conditions of the coverage to remain in place for 2007."
Dow Jones Newswires , Sept. 11.
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