Climate catastrophes like wildfires and severe storms have caused 83% of the estimated global insured losses of $107 billion in 2025, with the US being hit hard. The Los Angeles wildfires alone accounted for $40 billion in insured losses, making them the costliest ever, due to rising real estate values and risky building locations.
Swiss Re Group Chief Economist stressed the importance of strengthening prevention, protection, and preparedness to mitigate losses. Insurers are now requiring policyholders to take mitigation measures like clearing vegetation in wildfire-prone areas and using resilient building materials in hurricane zones.
FM, a mutual insurer, focuses on engineering solutions to protect properties from various perils, testing materials in simulated conditions like hurricanes, hailstorms, wildfires, and earthquakes. Their engineers work with clients to identify risks and implement resilience solutions tailored to specific needs.
FM’s research also focuses on hail, a costly natural disaster damaging solar panels. Using a high-powered hail cannon, FM tests roofing materials and solar panels for resilience, issuing certifications for products meeting high property loss prevention standards. Resilience credits help offset the cost of mitigation solutions for clients.
Insurers like Hippo and USAA are also offering mitigation advice to customers, with USAA actively reaching out to coach members on protecting their properties. USAA CEO highlighted the value of loss mitigation programs, such as water flow leakage valves and surge-detecting devices, in reducing risks and losses.
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