Re/insurance took centre stage at this year’s Climate Week NYC, held September 21–28, as growing urgency drives the adoption of new strategies and practices to assess climate-related risks, according to S&P.
Climate Week NYC 2025, organised by Climate Group in partnership with the UN General Assembly and the City of New York, brought together participants from the private sector, governments, nonprofits, and the broader climate community.
According to S&P, the event placed particular emphasis on the growing role of insurers as climate change drives more frequent and severe extreme weather.
The rating agency noted that some insurers are responding by raising premiums or withdrawing from high-risk regions, moves that carry significant implications for public policy and financial markets.
S&P continued, “The urgency is growing to adopt new strategies and practices to assess climate-related risks, particularly in the US homeowners insurance market.
“Insurers are actively revising homeowners policy forms and rules to address climate-induced risks.
“While actions of this sort have traditionally been focused on states such as Florida and California, given their heightened exposure to hurricanes and wildfires, respectively, the analysis showed that insurers are taking a more cautious approach to other markets, particularly those prone to hailstorms, pursuing actions that could have a broader impact on the affordability and availability of coverage.”
S&P noted that changes in insurance coverage terms and conditions could have significant implications for housing finance and the broader economy, emphasising that full homeowners insurance is essential for most mortgage loans to remain in good standing.
The rating agency concluded, “After an event occurs, higher wind and hail deductibles and more limited coverage for damaged roofs place more of the financial burden on property owners, raising mortgage delinquency and default risk.
“With carriers continually refining their appetites to write business in catastrophe-prone markets, society faces difficult choices that ultimately will culminate in the greater sharing of risk. But much uncertainty remains about how that risk will be divvied up.”
Climate Week NYC 2025 also touched on decarbonisation momentum, with energy “addition” strategies, pragmatic approaches to affordability, and extending investment horizons beyond election cycles.
It featured adaptation and resilience in water systems, drought-resistant agriculture and infrastructure.
AI, data centres and geopolitics were reportedly woven into discussions around clean, firm power and the energy demands of digital infrastructure.
Finally, water security, food systems, nature risks, biodiversity, ocean health and the growing role of nature-related disclosures were prominent themes.
