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Insurability depends more on neighborhood resilience than building upgrades
A World Economic Forum and Marsh playbook links higher catastrophe losses and affordability pressure to investments in storm drainage, flood defenses, and wildfire buffers.
A new playbook from the World Economic Forum, produced in collaboration with Marsh, says whether a property can be insured increasingly hinges on the resilience of the surrounding community, not just how well the individual building is fortified.
The report, titled “Addressing Insurability: A Playbook for Investing in Place-Based Resilience,” defines insurability as having adequate coverage available at an affordable price, and argues that investments such as storm drainage, flood defenses, and wildfire buffers are becoming critical to preserving it.
It also points to rising catastrophe exposure, saying global insured losses from natural catastrophes reached $107 billion in 2025, and have topped $100 billion every year since 2020.
In California, the report notes homeowners insurance premiums are up 84% since 2020, underscoring how affordability pressures are intensifying alongside broader insurability concerns, according to Risk & Insurance.