Market Overview: Climate Risk Solutions For The Insurance Industry
Emma Cutler
Access this research
Access all Sustainability & Climate Risks content with a strategic subscription or buy this single report
Need help or have a question about this report? Contact us for assistance
Executive Summary
The insurance industry is at the forefront of climate risk management; insurers offer risk transfer solutions that support climate risk management in other industries and are exposed to climate change-related risks in their own assets and liabilities. As climate change progresses, and insurers work to manage these risks, they rely on a variety of digital solutions. Catastrophe (CAT) models predict damage from low frequency, high impact events and inform underwriting decisions. Climate projection models take a longer-term view and feed into business strategy, investment decisions and risk disclosures. Thirdly, real-time hazard monitoring provides critical information immediately before, during and after extreme events. This report provides an overview of these technologies and recent developments in the market for climate risk solutions for the insurance industry.Social, economic and political factors exacerbate insurers’ climate risk
Traditional and alternative risk transfer products insure climate risk
Insurtech firms emerge to increase availability of climate risk coverage
Developments in climate risk digital solutions support the insurance industry
CAT models inform ratemaking, underwriting and reinsurance purchasing decisions
Forward-looking climate projection models contribute to longer-term risk management
Real-time hazard monitoring improves responses before, during and after extreme events
Figure 2. Vendors offering future-looking climate projection models for the insurance industry
About the Authors
Emma Cutler
Principal Analyst
Emma is a Principal Analyst at Verdantix, with a current research agenda focusing on solutions for climate risk management. She has a background in simulation and statistical ...
Ryan Skinner
Research Director
Ryan is a Research Director at Verdantix, where he leads a team of analysts delivering research, data and advisory services that help clients navigate the fast-evolving landsc...
View ProfileOther related content
Most sustainability leaders aren't using AI to its full potential. Concerns about data quality, regulatory risk, and potential inaccuracies mean AI is still widely seen as a compli...
Upcoming / 31 March, 2026
Over 80% of executives now expect sustainability investments to demonstrate measurable financial returns. Yet many sustainability teams still struggle to quantify the ROI of sustai...
04 March, 2026
As the EU Sustainability Omnibus Package is being finalised, join us to find out what action you need to take now, and how to prioritise in an era of rapid change. Find out: What t...
24 February, 2026
On November 3-4 2025, Greenbuild hosted the second annual Sustainable Finance and Investing Forum, a pre-conference event held exclusively for real estate investors, operators, dev...
04 December, 2025
Episode 29 The Chief Sustainability Officer (CSO) role has undergone a radical evolution. Once focused primarily on voluntary reporting, policy formation and goal-setting, today’s ...
04 December, 2025
After the rapid surge of ambitious policies in 2024, and the abrupt reversals, cancellations, and turbulence that followed in 2025, many organizations expected momentum to stall. I...
21 January, 2026