Global reinsurance broker Gallagher Re warns that “a new market reality” is on the horizon for America’s housing market, according to Money Talks News — and the problem could grow worse if action isn’t taken to mitigate one of the primary root causes.
What’s happening?
Insurance companies reported $84 billion in losses over the first six months of 2025 — the highest mid-year total in more than 20 years.
According to Money Talks News, Gallagher Re sees the estimated $100 billion threshold by year’s end as a sign that high insurance premiums aren’t coming down in the near future, since insurers are raising rates or imposing more stringent coverage limits on policyholders in response.
Why is this important?
One of the main reasons why insurance premiums are on the rise — making it challenging, if not impossible, for many to keep their homes or find coverage — is extreme weather.
CNBC did a deep dive into Gallagher Re’s H1 Natural Catastrophe and Climate Report this year and discovered that severe storms in the United States with wind, hail, and lightning caused more than $30 billion in losses for insurers. That’s nearly 40% of all losses globally.
Things could get worse if global temperatures continue to rise — and human activities are driving that trend. That’s because burning dirty fuels, such as gas, oil, and coal, releases gases that “act as a blanket,” as NASA explains, trapping heat in our atmosphere.
This planetary warming supercharges weather patterns and impacts water cycles. It also contributes to ice melt, making communities more vulnerable to storm surges as sea levels rise. Some of the other factors leading to changes in climate are deforestation and biodiversity loss.
What’s being done about this?
Since dirty fuels generate most of the heat-trapping pollution in question, transitioning to clean or low-carbon energy sources can help cool down the planet in the long term.
You can participate by installing solar panels at home or signing up for community solar. As an added bonus, both courses of action can lead to savings on energy bills. Supporting companies whose actions align with their stated commitments to sustainability is another way to help.
In the meantime, Money Talks News offered several suggestions for homeowners grappling with overstretched budgets due to rising insurance premiums.
Recommendations include shopping around for coverage every year, bundling policies, and raising your deductible if you have an emergency fund to cover higher out-of-pocket costs early on. Weatherproofing your home may also qualify for certain discounts.
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