A new survey from Insurity showed that concern over the impact of severe weather on insurance continues to grow among policyholders, with more consumers reporting higher premiums, difficulty securing coverage and a shift toward purchasing additional protection.
The 2025 Severe Weather P&C Consumer Pulse Survey found that 74% of respondents are either extremely or moderately concerned about how severe weather may affect their insurance coverage over the next five years. This marks an increase from 71% in 2024.
More than half of consumers surveyed, or 55%, reported that their premiums have already increased due to severe weather events. While slightly lower than the 56% recorded in 2024, the figure indicated that rate hikes remain widespread. At the same time, 32% of respondents said they had experienced difficulty obtaining coverage because of their location, up from 25% last year.
The survey also revealed that 34% of consumers have purchased new types of coverage, such as flood or hurricane insurance, in response to recent severe weather. That figure has risen from 27% in 2024, pointing to growing demand for specialized protection.
Insurity's chief revenue and insurance officer Sylvester Mathis said the results confirm that consumer concern about severe weather remains significant, with affordability and availability of coverage continuing to challenge many policyholders. Mathis noted that insurers have an opportunity to address this by offering products and pricing structures that strengthen consumer confidence.
Parallels in Canada
The findings mirror trends in Canada, where wildfires, flooding, and severe storms have contributed to mounting insured losses in recent years. The Insurance Bureau of Canada has repeatedly reported that severe weather claims now cost billions annually, with the gap between insured and uninsured losses widening.
In some regions, homeowners have struggled to obtain affordable coverage for flood and wildfire risks, echoing the challenges highlighted in the US survey. Premium increases and exclusions in high-risk zones have led to calls for expanded government-backed solutions, including the long-discussed national flood insurance program.
Like US consumers, Canadians are increasingly purchasing additional coverage to protect against events not traditionally included in standard policies. Insurers are also investing in technology and data analytics to better price risk, while governments and industry groups continue to stress the importance of climate resilience and mitigation to ease long-term pressures on the insurance system.
Industry Implications
The results point to an ongoing shift in the property and casualty insurance landscape on both sides of the border. Severe weather is shaping consumer behaviour, driving higher costs, and challenging the availability of traditional coverage. For insurers, balancing affordability, availability, and resilience remains a central issue as climate-related risks intensify.
The 2025 survey, conducted in August, included more than 1,000 randomly selected adults across the United States and asked participants nine questions about their concerns and experiences with severe weather and insurance coverage.
Insurity said the results highlight not only consumer anxiety but also the opportunity for insurers to build trust through transparent communication, resilient product offerings, and the use of technology to help policyholders prepare for future risks.
