Executive Summary
As the financial and physical impacts of climate change accelerate, the intersection of extreme weather, insurance, and resilience is emerging as a defining challenge for communities, governments, and markets. This event, hosted by the National Academies, will bring together leading experts from science, policy, and industry to explore how climate-driven disasters are reshaping insurance systems, straining public resources, and underscoring the urgent need for data-driven resilience strategies that protect lives, livelihoods, and long-term economic stability.
The Rising Costs of Climate Extremes
As extreme weather events grow in frequency and intensity, the financial and social impacts are straining both the insurance industry and community resilience systems. Rising recovery costs, shrinking coverage, and widening inequities are creating urgent challenges for households, businesses, and governments. The National Academies invites you to join a timely session building on its spring 2025 meeting, “Extreme Weather and Lessons for More Resilient Communities.”
This discussion will unite leading scientists, policymakers, and insurance industry experts to examine the drivers of this emerging crisis and explore practical pathways toward sustainable, equitable solutions. Participants will gain insights into how the insurance sector is evolving under climate stress, how data and risk modeling inform policy, and how resilience investments can safeguard communities and economies.
Case Studies in Climate Resilience: Helene Floods, Los Angeles Fires, Phoenix Heat: Lessons Learned for More Resilient Communities
Through examination of three recent events, this BASC Board open session seeks to advance understanding of the characteristics, impacts, and changing nature of today’s extreme events; highlight lessons and gaps for resilience to such disasters; and identify needs and contributions from the scientific community to enhance resilience across systems. This session will focus on three case studies: wildfires in Los Angeles, extreme heat in Phoenix, and extreme rainfall and flooding in Western North Carolina from Hurricane Helene. By exploring these diverse events, the discussion will extract key insights for policymakers, insurers, and researchers—helping to shape a more resilient national strategy for adapting to future extremes.
Frequently Asked Questions (FAQs)
- What is driving the rising costs of climate-related disasters? Climate-related disasters are becoming more frequent and severe due to rising temperatures, extreme rainfall, stronger storms, drought, and wildfire conditions. These hazards increase damage to homes, infrastructure, and businesses, creating higher claims and financial losses across insurance markets.
- Why are insurance premiums increasing in many climate-exposed regions? Premiums are rising as insurers reassess risk in light of recent extreme weather events and long-term climate projections. In some areas, insurers are reducing coverage or withdrawing entirely because projected losses exceed acceptable underwriting thresholds.
- How does climate risk intelligence help communities prepare for extreme weather? Climate risk intelligence uses climate models, hazard data, and asset-level analytics to identify vulnerabilities, quantify financial exposure, and guide resilience investments. This helps communities prioritize actions that reduce future damage and improve long-term safety.
- What role do policymakers and public agencies play in strengthening resilience? Public agencies set building standards, allocate resilience funding, modernize infrastructure, and regulate insurance markets. Policymakers also use climate risk modeling to inform adaptation strategies that protect vulnerable populations and reduce economic losses.
- How can tools like ClimaTwin support climate resilience and insurance stability? ClimaTwin provides asset-level climate risk modeling, future weather projections, and adaptation ROI analytics. These insights help utilities, agencies, and insurers understand where risks are highest, justify resilience investments, and strengthen long-term financial and operational stability.
(Source: National Academies of Sciences, Engineering, and Medicine. (2025). Extreme events, insurance, and resilience. Retrieved from https://www.nationalacademies.org)
Ready to get started? To learn how ClimaTwin can help you assess the physical and financial impacts of future weather and climate extremes on your infrastructure assets, capital programs, and investment portfolio, please visit www.climatwin.com today.
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