New Report Reviews Climate Risk and State Insurance Policy From 2025
FOR IMMEDIATE RELEASE
December 11, 2025
Contact: contact@insurancefairnessproject.com
New Report Reviews Climate Risk and State Insurance Policy From 2025
2025 has seen a considerable increase in the political salience of insurance policy, as lawmakers examine every possible lever to bring down costs. Today’s new report from Climate Cabinet Education, with support from the Insurance Fairness Project, provides an overview of state insurance policy developments throughout the year. The report summarizes what passed, what didn’t, and how state policymakers can learn from their counterparts in effecting policy that meaningfully relieves the financial pressure on their constituents.
“Climate Risk and State Insurance Policy: 2025 in Review" offers a survey of state governmental responses to the climate-driven insurance crisis across the United States, highlighting the best ways to promote financial stability and shield constituents from rising costs. By reviewing the wide range of policies adopted by different states in 2025, policymakers across the country have the opportunity to learn from other states’ successes while avoiding their mistakes.
“Now is the time for state lawmakers to embrace their economic power to address this growing cost of living challenge,” said Jordan Haedtler, one of the report’s authors and the climate finance strategist at Climate Cabinet. “Across the country, families are feeling the squeeze from rising insurance premiums, higher costs, and climate driven disruptions — and they’re looking to state leaders for real solutions.”
Legislative interventions aimed at stabilizing property insurance markets are being considered in almost every state. Proposed solutions include reducing risks through investments in community resilience, supporting public catastrophe models, reforming FAIR Plans, and increasing consumer protections. One constant is the need to address greater risks brought on by increased extreme weather events and the changing climate.
“Despite notable progress, no state has taken a holistic approach to insurance reform, which hampers the overall impact of each states’ policies,” said Amy Weinhouse, one of the report's authors. “By walling off the interrelated public policy questions of disaster recovery, land use and development, building codes, and insurance regulation, policymakers are missing opportunities to stabilize insurance markets in a maximally effective way.”
The report delves into a wide range of policy responses and provides examples that address differing causes of market disruptions. For instance:
>> California has proposed a new long term solvency regulation while improving transparency with a first-in-the-nation public catastrophe model for wildfires
>> Colorado became the first state to integrate climate resilience into insurance modeling
>> Maine established several new programs and funds to increase storm preparedness and resilience for Maine’s communities, homes, and infrastructure.
The report also reviews false solutions taken by states, such as deregulatory actions, that tend to harm consumers. These actions make the economy even more vulnerable to fragile insurance markets. Despite these examples, there are signs that the growing salience of insurance availability and affordability is shifting political dynamics. For instance, Louisiana’s governor softened the deregulatory agenda he pursued in his first year in office with a more “balanced” approach in 2025.
“What we’re hearing from people around the country is that they want real solutions to a spiraling home insurance market that is making it tougher to make ends meet,” said Lizzy Price, a spokesperson for the Insurance Fairness Project. “This report makes it so lawmakers don’t have to start from scratch. We’re providing a clear analysis of legislation that will have immediate and lasting protections for communities.”
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The Insurance Fairness Project is an information hub dedicated to offering insights into the home insurance crisis, exploring its drivers and highlighting solutions alongside issue experts and community advocates.
