From mitigation to adaptation
With U.S. climate losses averaging $120 billion annually, adaptation spending is becoming an economic imperative. Rising insurance costs and infrastructure vulnerability now shape credit ratings and state budgets.
Table 1. U.S. Climate-Related Losses
| Year | Billion-Dollar Disasters | Estimated Loss ($ B) |
|---|---|---|
| 2015 | 10 | 45 |
| 2020 | 22 | 100 |
| 2024 | 25 | 119 |
Sources: NOAA; FEMA.
Table 2. Insurance & Adaptation Indicators
| Metric | 2019 | 2023 | 2025 (f) |
|---|---|---|---|
| Average Home Insurance Premium ($) | 1,360 | 1,725 | 1,910 |
| Public Adaptation Spending ($ B) | 25 | 42 | 55 |
Sources: Insurance Information Institute; OMB.
Economic consequence
Insurers are retreating from coastal markets, pressuring states to expand public re-insurance pools. Capital markets are responding with catastrophe bonds and climate-linked securities.
Strategic action
Corporations should stress-test assets for physical-risk exposure, integrate ESG data into cost of capital models, and partner with local governments on resilience projects.