Natural catastrophes: two insurers halt homeowners' insurance underwriting in Florida

AIG and Farmers, two leading insurance companies, have decided to scale back their exposure to climate-related risks in Florida.

They have joined other insurers who have suspended or completely ceased underwriting homeowners policies in the country's most vulnerable regions to floods, storms and wildfires.

The growing number of natural disasters in the USA, rising construction costs and tighter reinsurance market conditions are some of the reasons why insurance companies are pulling the plug on their coverage.

A few weeks earlier, State Farm and AllState also stopped underwriting homeowners policies in California, a State that has been severely affected by wildfires.