Insurance and Climate Change

Wendy Nystrom
9 min readFeb 12, 2021

How renewable energy and microgrids can mitigate wildfire frequency and improve resiliency

I wrote this about a year ago, but thought it may help trigger some thoughts.


Wildfires, once infrequent, catastrophic occurrences, are now occurring annually causing billions in losses resulting in Insurance carriers non-renewing policies or limiting coverage for severely increased premiums.

In my previous paper, “Insurance and Climate Change: Adaptations to Address Wildfire Frequency and Catastrophic loss” I proposed the creation of the “Wildfire Alliance” where a synergy between the Homeowner /Insured, Carrier/Insurer, Utility Companies/Electric and Public Entities (City/State/Federal) is created.

While this Alliance will enable carriers to provide adequate coverage, the problem remains of how to enable the Utility Companies to provide adequate and reliable energy that is resistant to sparking wildfires.

This paper will discuss the need for a CSP (Concentrated solar power) and Photovoltaic (PV) solar panel hybrid to be installed as a network throughout California, interconnected through the implementation of microgrids to accommodate consumer usage, while improving community resiliency when faced with disaster and blackouts.


Wildfire frequency has exploded across California in the past decade, intensifying in the past 5 years. To manage this risk, I proposed the creation of a “Wildfire Alliance”, however managing the peril is equally important. This requires taking steps to minimize the likelihood of loss, which may be achieved though the proper use of Predictive Modeling. Predictive Modeling is a tool used to hunt through large quantities of data to find variables that hold clues to a location’s risk and exposure.

For the Wildfire Alliance to be successful, each member of the Alliance is required to be accountable for upholding their responsibilities. For homeowners, this would be landscape maintenance, removal of dead…

Wendy Nystrom

Host of Environmental Social Justice. Geologist and Insurance expert focused on climate and sustainability. No Shaming No Blaming and Every Little Bit Helps