Howden's latest climate report highlights the need for insurance to protect asset value and economic growth

As physical climate shocks escalate and underwriting criteria tighten, the report explains that insurability is no longer just a transactional issue, but a strategic priority. For governments, corporates, and investors, the ability to secure affordable and adequate insurance is becoming a core determinant of investment readiness, operational continuity, and policy credibility. 

The report introduces Howden’s Climate Insurability Framework, helping leaders assess and improve insurability across four critical levers: risk modelling; risk management; risk sharing; and public policy and regulation. 

It also presents lessons from historical insurability crises – from 19th – century fire insurance to modern catastrophe risk – and offers a case study on European agriculture and sovereign resilience. 

Rowan Douglas, CEO, Climate Risk and Resilience, Howden said: “We are entering a new era where insurance signals shape economic outcomes. I'm delighted that today we are introducing our Insurability Framework to help our clients use insurance signals to navigate their transition and gain competitive advantage. This proactive approach to insurance aims to optimise ongoing access to risk capital, resilience and investment to enable the transition." 

Key insights from The Insurability Imperative: 

• Insurability is a forward–looking indicator of financial health. As climate risks intensify, insurance is becoming a proxy for risk governance, data transparency, and resilience.  

• Insurance signals should inform board-level decision-making. Rising premiums, coverage withdrawals or tightening terms are not just market noise – they are early indicators of systemic vulnerability. 

• Resilience is becoming priced in. Insurers increasingly reward organisations that invest in adaptation and demonstrate strong risk management. These actions are being recognised not just through insurance terms, but through access to capital. 

• Public policy should support insurability. Regulation, zoning, and subsidies must align with climate science. When they don’t, they undercut both private coverage and public resilience. 

• Insurability can be influenced – but this requires capabilities. Leaders must build internal fluency in insurance logic, engage early with brokers and underwriters, and co-create solutions to emerging risks and technologies. 

A cross-sector priority 

While insurance has traditionally been seen as a procurement function, the report urges organisations to embed insurability into strategic planning, investment decisions, reporting, and capital structuring. 

“Maintaining insurability is fast becoming as important as maintaining a credit rating,” said Isabelle Cadignan, Chief Commercial Officer, Climate Risk and Resilience, Howden. “Boards need to understand that insurability is not fixed – it’s dynamic, shapeable, and critical in accessing affordable capital in the climate era.”