If we don’t invest in reducing physical climate risk now, we’ll pay for it later
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In 2025, extreme weather events such as hurricanes and floods caused significant economic damage, highlighting the financial reality of physical climate risk. These events led to increased insurance premiums, claims, and damage, emphasizing the need for investment in reducing climate risk.
Extreme weather events in 2025 caused significant economic damage. Hurricanes in Florida led to home insurance premium hikes and cancellations. UK floods increased claims in high-risk areas. In the Philippines, Typhoon Fung Wong caused damage attributed to climate change. These events were financial, not just weather-related. Markets are still not pricing them as such, highlighting the need for investment in reducing climate risk.
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