Rising climate risks are reshaping insurance portfolios, business models, and the very role insurers play in the global economy. Â
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In our third annual report, Ceres finds that while more insurers are disclosing climate-related risks, critical gaps persist—especially when it comes to setting measurable targets and driving real accountability.Â
The new report—2025 Progress Report: Climate Risk Reporting in the U.S. Insurance Sector—analyzes climate disclosures from 526 insurance groups representing over 1,700 companies, following the TCFD framework's four pillars: governance, strategy, risk management, and metrics and targets.Â
Key progress—with caveats:Â
99% of insurers reported on risk management, 97% on strategy, and 87% on governance.Â
But just 29% disclosed metrics and targets—virtually unchanged from previous years.Â
Only 28% of insurers disclosed across all four pillars of the TCFD framework Â
Use of climate scenario analysis is up 28%, with 148 insurance groups incorporating it in 2023Â Â
Disclosure isn’t the end goal—it’s the starting point. In 2024 alone, 27 billion-dollar weather disasters caused $182.7 billion in damages. In the U.S., this is contributing to a growing affordability crisis: nearly 8% of homeowners now go without insurance, putting $1.6 trillion in assets at risk.Â
The report outlines clear next steps for insurers and the industry, including:Â
Developing comprehensive metrics frameworks for underwriting and investmentsÂ
Setting science-based targets with clear interim milestonesÂ
Advancing from disclosure to actionable transition planÂ
Collaborating on standardized methodologies for assessing riskÂ
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