What Burning More Coal Means for Your
Health and Your Life Insurance
The recent
announcement that "Trump orders defence, energy departments to
reinvest in coal" marks a significant shift in how we power our
world. In simple terms, this means the government is moving away from cleaner
energy sources like wind or solar and putting its money—and our future—back
into burning rocks for fuel. As someone who spends all day looking at how long
people are likely to live, I see this as a major change in the "risk
map" of our lives.
Thick Air and Dirty Lungs
When we burn
more coal, the first thing we notice is the air. Coal is what we call a
"dirty" fuel. Unlike gas or renewables, burning it releases a
cocktail of nasties: tiny bits of soot, invisible chemicals like sulphur, and
heavy metals like mercury.
The coal
decision means that
in many areas, the air will get heavier and grittier. You might see more smog
on the horizon, but it’s the stuff you can't see—the tiny particles that
are small enough to cross from your lungs directly into your bloodstream—that
really concerns me.
How This Hits Your Health
From an
actuary’s perspective, this policy decision is like adding a new weight
to a scale. When we breathe in coal pollution, it doesn't just stay in the
lungs.
- Heart and Lungs: It triggers asthma attacks,
causes permanent scarring in the lungs (bronchitis), and can even cause
heart attacks or strokes by irritating the blood vessels.
- Cancer: We’ve known for a long time
that living near these emissions increases the risk of lung cancer
significantly.
- Early Death: Research shows that pollution
from coal is actually twice as dangerous to our lifespan as other
types of air pollution. It’s not just "bad air"; it’s
particularly toxic air.
Who is on the Front Lines?
One of the
hardest parts of my job is seeing that these risks aren't shared equally. The
coal decision will hit some people much harder than others:
- Children: Their lungs are still growing.
Breathing this air early in life can lead to permanent damage they’ll
carry forever.
- Older People: Those with existing heart or
lung conditions have less "room for error." A bad air day can be
the tipping point that leads to a hospital visit.
- Poorer Communities: Often, coal plants are located
near neighbourhoods where property is cheaper. People in these areas can't
simply "move away" from the smoke.
Updating the "Risk Bucket"
In the
insurance world, we think of your life as a "bucket" of risks. Some
risks you choose (like skydiving), and some are just part of the environment.
If we start burning more coal, I have to update my view of how long the average
person will live.
If you live
in a town where a coal plant is being restarted or expanded, the
"risk" in your bucket just got heavier. From my perspective, we have
to assume that, on average, people in those areas won't live quite as long as
we previously hoped. It's a sobering adjustment to make in 2026, especially
after years of seeing air quality improve.
What This Means for Your Insurance
Policy
Life
insurance companies aren't just observers; they are businesses that manage
risk. Here is how the coal decision might change things:
- Price Hikes: If you live in a high-pollution
"coal zone," companies might start charging more for life
insurance. Just as smokers pay more, people breathing heavy coal smoke
might see their premiums rise.
- Geographic Limits: We might see
"red-lining" for health, where it becomes harder to get the best
insurance rates if your zip code is downwind from a major plant.
- Future Planning: Insurance companies are
long-term planners. They are already looking at these policy shifts and
moving their money around, potentially pulling away from investing in
areas they think will become "unhealthy" in twenty years.
An Ethical Dilemma
Finally, we
have to ask a tough question: Is it right for insurance companies to
profit from this?
When a
government makes a decision that likely makes its citizens sicker, insurance
companies respond by raising prices to protect their bottom line. It feels
unfair—almost like being punished twice. First, you lose your clean air, and
then you have to pay more just to protect your family’s future. While companies
have to be realistic about health risks to stay in business, there is a deep
ethical tension in profiting from a situation where people’s health is being
traded for energy policy.
Session Tag: CoalPolicyLongevityActuary2026
Comments
Post a Comment