Climate Resilience Upgrades Often Lack Insurance Perks
Most organizations report that insurers fail to recognize specific property resilience investments with lower premiums.
Updated on Sept. 29, 2026 in Commercial
Live Poll
Should insurance companies lower premiums for policyholders who invest in property safety measures?
While commercial property owners are investing in upgrades to mitigate climate risks, only 26% of organizations report that insurers officially recognize these efforts. This gap between physical improvement and insurance cost savings presents a challenge for owners looking to offset the costs of resilience.
Why it matters
Resilience investments are intended to improve risk profiles and attract more insurance capacity, yet many catastrophe models still fail to quantify these specific mitigation actions. This leaves property owners bearing the costs of upgrades without the expected relief in insurance premiums.
Only 26% of the 120 global organizations surveyed in the Marsh 2026 Climate Adaptation Survey reported that insurers recognized their climate adaptation efforts. For projects like the Tahoe Donner wildfire policy, however, targeted interventions led to a 39% premium reduction.
The players
Prologis
A global real estate investment trust that owns and manages 6,000 properties across 20 countries.
The Nature Conservancy
An environmental nonprofit that partnered to develop the $2.5 million Tahoe Donner wildfire policy.
Willis Towers Watson
A global risk management and insurance brokerage firm that co-developed the Tahoe Donner wildfire policy.
The details
Property owners are increasingly installing roof upgrades, automatic sprinklers, and water-monitoring technologies to harden their assets against climate threats. By communicating these actions to insurers, risk managers hope to influence catastrophe models that assess factors like building elevation and roof materials. In successful cases, such as the $2.5 million Tahoe Donner wildfire policy, these measures resulted in a 39% lower premium and an 84% lower deductible.
Timeline
2025: The Tahoe Donner wildfire policy was developed.
September 2026: The Marsh Climate Adaptation Survey was released.
Money Landscape
This development highlights an ongoing friction in the commercial insurance cycle where property owners prioritize hardening assets against climate risk. It follows the trend set by the Marsh 2026 Climate Adaptation Survey, which reveals a gap between proactive mitigation and insurance coverage terms.
Property owners should document specific resilience upgrades and work with insurance professionals to ensure these features are integrated into catastrophe models. This approach may help secure better coverage terms, though recognized premium relief remains inconsistent across the market.
The takeaway
The primary insight is that physical resilience investments often do not automatically lead to lower insurance costs. Property managers should maintain detailed records of building improvements to support future discussions with underwriters regarding risk profiles.
Further reading
Learn more about risk management for Commercial properties.
Live Poll
Should insurance companies lower premiums for policyholders who invest in property safety measures?
