Comment by waveBidder

This is mostly a probability nitpick:

Most disasters follow power laws and other fat tail which don't have the same effects in the tail as a Gaussian. If you shift 1/x^a by c, you "only" get a polynomial increase.

But also, if you shift the mean of a Gaussian, the increase isn't exponential, it's super exponential (e^(x^2) to be specific).

> Insurance is based on statistics. The math they use assumes stationary distributions. Insurance companies can't deal with shifting distributions well so they take the losses and then exit markets.

Sure they can, that's why they hire statisticians. They routinely deal with insurance of much rarer events where we have much worse models than climate change. They're just banned from charging the actual rates, because it's politically unacceptable.