As climate events become more frequent and severe, the need for resilient infrastructure and business continuity planning is becoming urgent, and even, for some, existential.
One broker thinks it's time the insurance industry steps up with formal credit mechanisms to reflect that reality.
“We’re seeing many of our clients who’ve modelled their risks, built out resilience playbooks, and made real strategic investments in climate adaptation,” said Beverly Adams, head of climate and catastrophe resilience at Marsh. “Now they’re asking: where’s the recognition from insurers?”
She believes the London insurance market is uniquely placed to lead this evolution.
With its longstanding reputation for underwriting innovation, close ties to government policy, and a strong track record on climate disclosure, including being first to implement the Task Force on Climate-related Financial Disclosures (TCFD) framework, London has the credibility to set a global standard.
“If any market can lead on resilience underwriting, it’s this one,” Adams said. “We have the tools, the regulatory backing, and the institutional knowledge. We just need to bring it together.”
Across industries, companies are increasingly proactive about mitigating climate-related threats, whether through flood resilience, heat stress management, wind proofing, or carbon reduction strategies. But according to Adams, insurance coverage and pricing often fail to reflect these investments.
While there are some promising early signs, such as insurers offering reduced deductibles or informal premium credits, these actions remain inconsistent and largely ad hoc.
“There are a few pockets of innovation, but we need more structure,” Adams told Insurance Business. “Clients are asking for resilience scoring, credits, or similar tools that can formally recognize and incentivize good risk management practices.”
She draws a parallel to the financial markets, where sustainability-linked loans often reward green improvements with lower interest rates. Translating this approach to insurance, a business that has flood-proofed its facilities, upgraded to fire-resilient materials, or implemented an advanced climate adaptation plan might reasonably expect reduced premiums, broader coverage, or improved terms.
“If you look at sectors like data centers, investors are rewarding energy upgrades with tangible financial incentives, like 25-basis-point reductions,” said Adams. “Insurance should be doing the same.”
A key part of Adams’ vision is the creation of a more unified approach to resilience assessment. She is calling for a market-wide playbook to guide underwriters in evaluating and pricing climate risk mitigation efforts, similar to existing tools for fire risk or catastrophe exposure.
At Marsh, Adams and her team have already developed such a playbook. Built in response to emerging TCFD reporting requirements, it’s a practical tool that helps businesses and their insurers quantify and manage climate risk.
“If a company runs a model and identifies three high-risk sites, we go straight to the playbook,” she said. “For flood risk, it outlines specific actions, emergency plans, fit-outs, barriers, and even recovery timelines.”
Adams, a qualified flood surveyor who helped write the UK’s code of practice on flood resilience, sees this method as a roadmap to smarter, more accountable insurance. The playbook also extends to wildfire, windstorm, and other perils, with dedicated tabs that guide companies through hazard-specific mitigation strategies.
Competitive edge is arguably the low-hanging fruit for insurers that lead the way with climate resilience incentives. Those that can accurately assess and reward climate readiness can support better risk outcomes, as well as attract more business.
“It would give companies a reason to keep investing (in sustainability),” Adams said. “And it would help insurers truly move the needle on climate risk.”
So why hasn’t the resilience credit model taken hold more broadly?
For one, insurers and underwriters often lack consistent data on clients’ mitigation efforts. Additionally, without a standardized framework or regulatory push, many are hesitant to alter pricing models that rely on actuarial history.
Adams also pointed to a coordination gap between risk management teams, brokers, and underwriters. Brokers may know what clients are doing, but insurers may not have a formal mechanism to assess or incorporate that information. Bridging these silos is key.
“Brokers play a crucial role in connecting the dots,” Adams said. “We hear directly from clients who’ve invested in their resilience. Our job is to make sure that story gets told, and that it translates into meaningful value.”
