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US insurers have made progress on reporting their climate change risk management process, even as financial regulators have pulled back on climate risk disclosures amid a general backlash against green policies by the Trump administration.
With an estimated US$182.7bn in climate-related damages in 2024, US insurers seem to be taking note of the potential impact climate change poses to the industry.
Despite this, there are critical gaps in reporting on metrics and targets, a study from nonprofit Ceres has found.
The third annual report from Ceres found a year-on-year improvement in integrating climate into risk management, identification of climate risks and greenhouse gas emissions disclosures.
Only 29% of insurance companies reported their metrics and targets in 2024, which Ceres noted was “an urgent concern” considering the billions of dollars in damage from extreme weather events that occurred last year.
“Without measurable targets and metrics, stakeholders cannot effectively assess insurers’ progress or hold companies accountable for their climate risk goals,” said Jaclyn de Medicci Bruneau, director of insurance at Ceres Accelerator for Sustainable Capital Markets and lead author of the report.
The analysis also found that only 28% of insurers reported on all four pillars defined by the Task Force on Climate-related Disclosures (TCFD), with 59% disclosing on three.
“With climate impacts intensifying at an alarming rate, reporting alone cannot be the end goal,” de Medicci Bruneau said. “Strong disclosure practices, particularly in the critically underreported metrics and targets pillars, must serve as the foundation for strategic transformation and actionable transition plans.”
With extreme weather events becoming more common and increased premiums in the US and globally, there are increasing concerns about potential spillover effects if property owners cannot get their homes insured. Experts have warned that the increasing insurance gap could put stress on the US economy, with a potential loss of $1.2tn.
It is not only large weather events accentuating the issue. Smaller instance such as rain and hail are adding up to big losses, Inside Climate News reported.
Insurers with $100mn or more in premiums must fill out a climate risk disclosure survey under the National Association of Insurance Commissioners, which is based on the TCFD pillars.
However because of uneven insurance regulation in America, not all US states participate in the survey. The survey requirement currently applies to 29 US states and territories, accounting for around 85% of the insurance market.
The Ceres report also highlighted recommendations for companies and regulators, including setting science-based targets with specific milestones and measures, investing in tools to properly measure emissions through all supply chains, and progressing from disclosures to actionable climate transition plans.
“Insurers are the risk managers of the economy and uniquely positioned to mitigate the financial impacts of a changing climate,” said Laura Zizzo, founder and chief strategy officer at Manifest Climate, an AI firm that conducted the analysis. “To lead effectively, they must set the standard with clear, decision-useful disclosures – and demand the same from the companies they underwrite and invest in”.
This page was last updated June 9, 2025
Written by
Moriah Costa is the Editor-in-Chief of Green Central Banking and has over a decade of experience writing about banking and finance. She is an award-winning American journalist based in Paris and has written for major international publications, including Reuters, The Guardian, and S&P Global. Having grown up in water-stressed Arizona, she has always had a strong interest in bringing awareness to climate and environmental issues.
