Buffett warns climate change affects Berkshire Hathaway's insurance

Warren Buffett's recent letter to shareholders included a rare warning about climate change, highlighting its potential impact on Berkshire Hathaway's insurance business. He noted that increasing climate disasters could lead to higher insurance claims and costs. Buffett emphasized that while risks are rising, they also present growth opportunities for the insurance industry. He mentioned strategies like shorter-term policies to better manage pricing and risks, which have already been adopted in auto insurance. Despite the challenges, Buffett remains confident in Berkshire's insurance operations. He pointed out the company's competitive advantages, such as its financial strength and cautious management culture, which position it well to navigate the changing landscape of climate-related risks.