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61% of Insurance Leaders Say Industry Failing to Keep Pace with Climate Risk

Written by Insurance Nerds Editorial Team | Oct 13, 2025 10:04:29 AM

Insurance Industry Struggles with Climate Preparedness

A recent survey by ZestyAI highlights a disconnect in the insurance sector regarding climate-driven risks. The survey reveals that 61% of insurance leaders believe the industry is not adequately preparing for the growing threats posed by climate change, even as the frequency and severity of natural disasters continue to rise.

Key Findings from the Survey

The survey indicates that many insurance professionals are aware of the increasing costs associated with natural disasters but feel their organizations are lagging in response. Specifically, key points include:

  • Awareness vs. Action: While leaders recognize the climate risks, they struggle to implement effective strategies to mitigate these threats.
  • Increased Natural Disasters: The rising number of severe weather events is becoming a significant concern, ultimately impacting the industry's bottom line.
  • Need for Better Tools: There is a call for improved risk analytics and property-specific climate data to better equip insurance companies in making informed decisions.

Who is Affected?

The implications of this survey affect various stakeholders including insurers, policyholders, and communities at risk. If companies fail to adapt to the evolving climate landscape, policyholders may face higher premiums or inadequate coverage when disasters strike.

What’s Next?

This survey serves as a wake-up call for the insurance industry, urging leaders to prioritize climate risk preparedness. There is a clear need for more proactive measures that align with the increasing realities of climate change, ensuring that both the insured and insurers are more resilient in the face of future challenges.

As indicated by the official announcement from ZestyAI, the insurance sector must take swift steps to better align their strategies with the pressing challenges brought on by a changing climate.

Original Source: https://ffnews.com/newsarticle/61-of-insurance-leaders-say-industry-failing-to-keep-pace-with-climate-risk/