Rising climate risks are reshaping insurance portfolios, business models, and the very role insurers play in the global economy.  
 
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. 

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. 

Key progress—with caveats: 

• 99% of insurers reported on risk management, 97% on strategy, and 87% on governance. 

• But just 29% disclosed metrics and targets—virtually unchanged from previous years. 

• Only 28% of insurers disclosed across all four pillars of the TCFD framework  

• Use of climate scenario analysis is up 28%, with 148 insurance groups incorporating it in 2023  

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. 

The report outlines clear next steps for insurers and the industry, including: 

• Developing comprehensive metrics frameworks for underwriting and investments 

• Setting science-based targets with clear interim milestones 

• Advancing from disclosure to actionable transition plan 

• Collaborating on standardized methodologies for assessing risk