Insurers across the United States are increasing awareness of environmental risks associated with climate change, as revealed by a recently published report.

The latest report from Ceres, the Ceres Accelerator for Sustainable Capital Markets, has revealed a year-on-year improvement in the integration of climate considerations into risk management, identifying climate risks, and greenhouse gas emissions disclosures by the insurance sector. However, the report also underscores the urgent need for progress from disclosures to actionable climate transition plans.

According to the report, only 28% of insurers have reported on all four pillars defined by the Task Force on Climate-related Disclosures (TCFD), while 59% disclosed on three of the TCFD's four pillars. The report recommends setting science-based targets with specific milestones and measures, and suggests investing in tools to properly measure emissions through all supply chains.

In the United States, uneven insurance regulation means not all states participate in the survey. However, in 2025, major US insurers participating in the National Association of Insurance Commissioners' climate risk survey included State Farm, Allstate, and Berkshire Hathaway, collectively representing approximately 60% of the US insurance market.

Jaclyn de Medicci Bruneau, director of insurance at Ceres Accelerator for Sustainable Capital Markets and the lead author of the report, emphasised that reporting alone is not enough. Strong disclosure practices, particularly in the underreported metrics and targets pillars, are crucial for strategic transformation and actionable transition plans.

Laura Zizzo, founder and chief strategy officer at Manifest Climate, stated that insurers are uniquely positioned to mitigate the financial impacts of a changing climate. However, the report also highlights that the insurance gap could potentially cause stress on the US economy, with a potential loss of $1.2tn. In 2024, US insurers were projected to face an estimated $182.7bn in climate-related damages.

The report also draws attention to smaller weather events, such as rain and hail, contributing to big losses. This comes after billions of dollars in damage from extreme weather events last year, which Ceres has identified as an urgent concern.

The survey requirement currently applies to 29 US states and territories, accounting for around 85% of the insurance market. The Ceres report recommends progressing from disclosures to actionable climate transition plans, setting science-based targets with specific milestones and measures, and investing in tools to properly measure emissions through all supply chains.

This page was last updated on June 9, 2025.

Insurers across the United States are increasing awareness of environmental risks associated with climate change, as revealed by a recently published report.