Risky Business: Insurance in the Era of Climate Change

Environmental and Energy Study Institute (EESI)

The Environmental and Energy Study Institute (EESI) held a briefing about Congress’s role in bolstering the long-term resilience, investability, and insurability of U.S. communities. Insurance premiums have increased by an average of 21% since 2015, and almost 67% of U.S. homes are underinsured. This raises significant questions about the ability of American households to affordably manage the risks they face from increasingly severe and frequent disasters like wildfires and storm-induced flooding.

This briefing explored the basics of property insurance and how it functions in the United States, including the challenges faced by individuals, businesses, insurers, and reinsurers. It also featured existing and emerging tools—from parametric insurance to climate endorsements—that are reshaping how insurance products can better serve communities. Panelists described the role of federal policy in advancing these new ways of thinking about insurance.

At this briefing, Woodwell Climate Research Center also be launched a new report, Rebuilding Insurance for a Climate Future: A Policy Guide to Understand Tools, Address Inequities, and Find Solutions.