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Insurer Rewards Can Boost Climate Resilience Spending, Aon Says
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Claims Journal
Insurers can drive improvements in climate resilience by rewarding companies that invest to protect their businesses, rather than simply penalizing risky assets with higher premiums, according to a senior executive at Aon Plc.
Natural disasters generated $260 billion in global economic losses in 2025, with $133 billion of that damage uninsured, according to Aon’s 2026 Climate and Catastrophe Insight report.
is engaging insurance companies on pricing some policies differently for companies that adopt weather-protection measures, while Carlyle Group Inc. recently developed a risk framework intended to reflect the benefits of asset hardening.
Closing the global protection gap — the share of losses left uninsured — will require overcoming a severe lack of data on the true cost of climate events, according to Richards.
Photograph: Destroyed homes in the aftermath of the Los Angeles fires in January 2025; photo credit: Kyle Grillot/BloombergRelated:Copyright 2026 Bloomberg.