The Trump administration’s recent decision to shut down the National Oceanic and Atmospheric Administration’s (NOAA) disaster database is raising alarms among insurers and climate experts. This database, which has been crucial for tracking severe weather events and their financial impacts, will no longer be available, leaving many in the insurance industry worried about how they will assess risks related to wildfires and extreme weather.
The database has documented 403 weather and climate disasters in the U.S. from 1980 to 2024, each causing over $1 billion in damages. This adds up to a staggering total of more than $2.9 trillion in costs. Insurers, who rely on this data to model risk and set premiums, are now facing a significant gap in available information. Brian Espie, chief underwriting officer at Kettle, expressed concern that the loss of this resource will complicate underwriting processes and increase costs across the board.
Kettle, which has built its business around wildfire data, has relied heavily on public data supplied by NOAA. Espie mentioned that the shutdown of the database comes amid broader budget cuts and staffing reductions at NOAA, which are part of the Trump administration’s efforts to roll back climate-related initiatives. This situation places a strain not only on insurers but also on researchers and the public who use this data to understand the growing threat of climate change.
The closure of the NOAA database means that insurers will have to turn to private vendors for similar data. However, these private sources are likely to charge more, which could ultimately lead to higher insurance premiums for homeowners and businesses. Espie noted that Kettle has been preparing for this shift by seeking alternative data sources and investing in internal systems to manage the new information.
While some investors in private climate data firms may benefit from this change, the broader impact will likely be felt by policyholders. As insurers face increased costs, these expenses will likely be passed on to consumers, making insurance more expensive in the long run. This situation highlights the challenges that both the insurance industry and the public face as they grapple with the realities of climate change and the associated financial risks.