![Firefighters spray water on the Hughes Fire in Castaic, Calif., Wednesday, Jan. 22, 2025. (AP Photo/Ethan Swope) Firefighters hold a hose as they battle a wildfire](https://i.cbc.ca/1.7439189.1737618081!/fileImage/httpImage/image.jpg_gen/derivatives/16x9_620/california-wildfires.jpg)
In addition to causing widespread destruction, climate disasters are battering insurance companies. As premiums rise and some regions become uninsurable, it could have a cascading effect that could lead to a financial crisis, says one U.S. economist.