The Insurance Affordability Crisis: Risks, Resilience, and Solutions

For property owners, insurance provides a critical financial safety net that protects homes, businesses, and other assets from unexpected losses, helping owners recover and rebuild when disasters occur. Beyond individual protection, insurance is fundamental to the resilience of communities and local economies, enabling faster recovery, supporting continued investment, and reducing the long-term financial impacts of shocks. As risks become more frequent, severe, and costly, access to affordable, available, and reliable insurance is increasingly essential, not only for safeguarding property owners but also for maintaining overall property affordability, economic stability, and the resilience and prosperity of the communities in which they live and operate.

The frequency and severity of losses are increasing faster than insurers can sustainably price and absorb them, leading to higher premiums, reduced coverage availability, and, in some cases, the withdrawal of insurers from certain markets. This trend is eroding the affordability and accessibility of insurance, increasing the total cost of property ownership, and placing additional pressure on housing and business affordability while leaving individuals, businesses, and communities more physically and financially exposed. 

However, the insurance sector is increasingly recognized as a key component of resilience, incentivizing risk reduction through pricing and support for adaptation measures that can help moderate long-term insurance costs. When functioning effectively, insurance enables communities to not only recover from shocks but also to better prepare for future risks while preserving access to coverage.

Linked below are reports, expert blogs, and other resources that examine the insurability crisis and how insurance can play a key role in advancing housing resilience and adaptation.