This report focuses on the role of insurance in addressing climate risks in cities. The objectives of the report are to provide a common understanding of the current role of the insurance sector in the urban space related to climate resilience and to identify barriers and opportunities for closing the protection gap for climate risk. As climate risks escalate and climate-related hazards become more frequent and costly, cities ought to increase their focus on ex-ante preparedness and resilience. Indeed, cities are often at the frontline of response to climate-related hazards because of their geography – often in low-lying coastal areas – and their concentration of population, infrastructure, and assets. Economic losses from climate-change related hazards are trending upwards. From 1980 to 1990, an average of 149 climate-related disasters occurred annually, posting economic damage estimated at about USD 14 billion each year.
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