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Report

Investing in Resilience

Turning risk reduction into market recognition

Insurance markets are repricing physical risk in real time.

As carrier withdrawals, reduced reinsurance capacity, and tighter underwriting terms reshape coverage in exposed areas, the ability to secure affordable risk transfer may increasingly depend on how well underlying risks are understood, managed, and reduced.

What the framework proposes:

  1. Forward-looking hazard and loss modeling
    CMIP1-aligned, asset-level modeling to assess future physical risk.
  2. Vulnerability and gap assessment
    Evaluation of exposure against recognized resilience standards.
  3. Documentation of resilience investments
    Clear evidence of actions taken and quantified reductions in average annual loss (AAL).
  4. Translation into insurance terms
    Structured use of documented risk reduction to inform pricing, terms, and coverage considerations.

Without a scalable mechanism to reward proactive investment, the protection gap widens, the cost of capital for climate-exposed assets rises, and downstream credit, mortgage, and infrastructure markets absorb the spillover.

Report

Investing in Resilience

Building an insurance-centric framework for resilience investment

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