Question

Changes in weather patterns are increasing administrative costs for insurance companies. These added costs often exceed the amount of the premiums coming in and claim payments going out. To address this problem, insurance companies typically

Answer 1

buildup the amount of their reserves

Step-by-step explanation:

Based on the information provided within this question it can be said that in order to address this problem, insurance companies typically buildup the amount of their reserves. By doing this the company's have a sort of "escape plan" allowing them to pay these excess costs that they would otherwise not be able to pay since it exceeds the amount that they are making.