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What the Real Estate Industry Needs to Know about the Insurance Industry and Climate Change
Over the last 20 years, the insurance industry has made major advances in managing the risks associated with natural catastrophes and extreme weather. In addition, the insurance industry has embraced public leadership on climate change, communicating its risks and promoting adaptation to its unavoidable consequences, including through new insurance products.
What the Real Estate Industry Needs to Know about the Insurance Industry and Climate Change examines why the real estate industry can be increasingly confident in the stability and resilience of the insurance industry as a whole. The real estate industry may even benefit from incorporating the insurance industry’s risk management tools into regular best practices.
In a world shaped by climate change, however, maintaining the insurability of individual properties is not a given. As part of managing its own risks, the insurance industry is improving its ability to accurately price risks and to determine when to reduce its exposure to certain high-risk markets. Unless owners and societies take steps to reduce their exposure to the damages and losses associated with extreme weather, the overall affordability and availability of insurance will be affected.
Topics Covered:
- Three Challenges: Catastrophes, Urbanization, and Climate Change
- Tools: Risk Standards, Modeling, and Scenario Analysis
- Case Comparisons: Canada, Germany, the United Kingdom, and the United States
- Adaptation and Resilience: Insurance Products and Practices
- Comprehensive Solutions: Insurance, Infrastructure, and the Built Environment
What the Real Estate Industry Needs to Know about the Insurance Industry and Climate Change is part of a white paper series that explores making communities more adaptive to climate change, as well as the financial and insurance components of resilience planning. This series is supported by the Kresge Foundation and produced by ULI’s Urban Resilience Program.