When Zillow Group Inc. removed climate risk scores from its home listings last month, following a complaint from the real estate industry, many observers took to the press and social media to warn that disappearing the data doesn’t get rid of the risk.In a world assailed by extreme weather, homeowners and purchasers need to know their property’s vulnerability to wildfire or flooding. Ratings like those Zillow took down — which use the latest science, advanced computing and satellite imagery — are a big impr ...

Core Insights - Homeowners are projected to see insurance premiums increase by 16% over the next two years due to rising natural disasters and rebuilding costs [1] - The average homeowner insurance premium is expected to rise by 8% in both 2026 and 2027 [1] Insurance Premium Trends - Insurance premiums have been rising dramatically, with some areas experiencing double-digit growth [2] - Currently, insurance accounts for 9% of the typical U.S. homeowner's payment, the highest average on record [3] Factors Driving Premium Increases - Higher rebuilding costs, influenced by overall inflation and housing supply-chain issues, are driving premiums higher [3] - More frequent natural disasters have led to increased damage and claims, prompting insurers to adjust their pricing [4] Climate Risk and Real Estate - A significant portion of U.S. housing stock faces severe or extreme climate risks, including 6% for flooding, 18% for wind risk, and 6% for wildfire [4] - Trillions of dollars in real estate are exposed to significant risk, with coastal markets particularly vulnerable to severe flood risk [5] Market Impact - The increase in homeowners insurance costs could further hinder buyers in an already stagnant housing market, exacerbating the affordability crisis [6] - Rising premiums may discourage potential buyers from estimating their monthly housing expenses accurately [7]

Core Insights - The Philippines has launched its first parametric insurance solution aimed at protecting the livelihoods of 14,200 small-scale fishers, marking a significant step in climate risk management [1][3][4] Government and Partnerships - The initiative is a collaboration between the Bureau of Fisheries and Aquatic Resources (BFAR), the Philippine Crop Insurance Corporation (PCIC), global conservation organization Rare, and Willis, a WTW business [1][2] - Funding for the project comes from the Ocean Risk and Resilience Action Alliance (ORRAA), supported by the Governments of Canada and the UK [2][12] Insurance Details - The parametric insurance is designed to mitigate income losses due to adverse weather conditions, providing up to US$100 per policy cycle to offset income loss from dangerous weather [4][5] - The insurance utilizes a weather index based on wind speed, sea state, and rainfall to determine payout eligibility, ensuring timely compensation for lost fishing days [4][6] Impact on Fishers - The program aims to reduce financial pressure on fishing households and promote sustainable fishing practices, thereby enhancing the resilience of coastal communities [5][6] - BFAR will act as the policyholder, demonstrating government support for innovative climate risk solutions [4][6] Future Prospects - If successful, the pilot program could evolve into a nationally scalable tool for protecting coastal livelihoods, complementing existing insurance coverage [6]