What the Real Estate Industry Needs to Know about the Insurance Industry and Climate Change
This report examines why the real estate industry can be increasingly confident in the stability and resilience of the insurance industry as a whole. The real estate industry may even benefit from incorporating the insurance industry’s risk-management tools into regular best practices.
In a world shaped by climate change, however, maintaining the insurability of individual properties is not a given. As part of managing its own risks, the insurance industry is improving its ability to accurately price risks and to determine when to reduce its exposure to certain high-risk markets. Unless owners and societies take steps to reduce their exposure to the damages and losses associated with extreme weather, the overall affordability and availability of insurance will be affected.
Report Summary: Over the last 20 years, the insurance industry has made major advances in managing the risks associated with natural catastrophes and extreme weather. In addition, the insurance industry has embraced public leadership on climate change, communicating its risks and promoting adaptation to its unavoidable consequences, including through new insurance products.
This report examines why the real estate industry can be increasingly confident in the stability and resilience of the insurance industry as a whole. The real estate industry may even benefit from incorporating the insurance industry’s risk-management tools into regular best practices.
In a world shaped by climate change, however, maintaining the insurability of individual properties is not a given. As part of managing its own risks, the insurance industry is improving its ability to accurately price risks and to determine when to reduce its exposure to certain high-risk markets. Unless owners and societies take steps to reduce their exposure to the damages and losses associated with extreme weather, the overall affordability and availability of insurance will be affected.