With the escalation of climate risks and surging insurance rates, local governments worldwide face an urgent financial reality. Cities that fail to adapt face economic erosion, declining tax bases, and increased exposure to disasters. A new report from Resilient Cities Network and Tokio Marine Group, “Under Pressure, Overdue: The Portfolio Approach and Financing Cities for Resilience”, highlights the widening protection gap—where uninsured losses from climate impacts are growing faster than the capacity of insurance systems to absorb them.
A Financial Imperative, Not an Option
Resilience is no longer a peripheral environmental initiative—it’s an economic survival strategy. Across the U.S., counties have seen insurance premiums rise by as much as 400%, threatening housing affordability and local competitiveness. The report emphasizes that integrating resilience into city finance strategies is now essential for maintaining fiscal stability.
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