New research from Marsh, the global insurance broker and risk advisor, highlighted a growing disconnect between climate risk awareness and adaptation investment among private sector organisations.
The 2025 Climate Adaptation Survey, which gathered responses from over 130 risk managers worldwide, showed that while most companies recognise the threat of climate-related events, few are taking comprehensive steps to mitigate the impact on assets and operations.
According to the survey, 78% of organisations have experienced climate-related impacts, including flooding, heat and water stress, with 74% reporting losses or operational disruption. Yet only 38% conduct detailed climate risk assessments, and 22% do not evaluate future climate impacts at all. This gap leaves many companies underprepared and reliant on reactive risk management measures.
Regional differences were pronounced, with the highest proportion of respondents reporting impacts in Asia (73%), followed by India, the Middle East, and Africa (68%), and Canada (67%). The research also identified under-appreciated system-level risks, such as dependencies on critical infrastructure and supply chains, which can amplify the effects of extreme weather events.
A notable 40% of respondents cited insufficient funding as a barrier to effective adaptation. Other challenges include competing business priorities, limited understanding of future climate scenarios, and resource constraints.
Marsh emphasised that the findings have direct implications for insurers and risk managers. Organisations that underinvest in climate adaptation may face increased claims frequency and severity, higher insurance premiums, and greater exposure to business interruption losses. Embedding climate risk into enterprise risk management frameworks can help companies align insurance coverage with emerging threats and improve resilience.
Amy Barnes, Marsh’s head of Climate and Sustainability Strategy, said the research underscored the need for a more holistic approach to climate risk. “[O]rganizations consistently underinvest relative to the severity of their identified risks. [P]roactive resilience planning is essential to safeguard assets, maintain revenue streams, and protect long-term business viability,” Barnes said.
The survey signaled a growing role for insurers and brokers in guiding clients through climate adaptation strategies, linking risk assessments to coverage, and supporting investments that reduce long-term exposure to extreme weather and environmental disruptions.
