Howden: Climate volatility is turning insurability into a strategic priority

By Scott Vincent

June 23 - (The Insurer) - Howden has called for the adoption of insurability as a basis for decision-making by governments and corporations, with a paper published by the broker urging leaders to elevate insurability in their risk, investment and policy strategies.

The paper, released ahead of London Climate Action Week, sets out the concept of insurability as a signal to the market about the nature of risk, and one that allows consumers to understand their future risk landscape.

“Since insurability effectively acts as barometer of long-term viability across industries and geographies. It is a true measure of how well risks are understood, managed and mitigated,” Howden Group CEO David Howden explained in his foreword to the report.

By embracing risk intelligence as a core capability and aligning with underwriters early, Howden said partnerships with governments, industries and insurers can be reshaped to unlock investment in resilience and adaptation.

The report described insurability as a gating issue which can determine market access, operational continuity and transition credibility.

“Those who fail to engage will find themselves increasingly exposed. Those who lead will use insurability to unlock investment, drive resilience, and build trust in a fast-changing world,” the broker said.

“The message is clear: insurability is no longer just about protection – it is about access to capital. It is a lever of transformation – and a signal of who is ready for what comes next.”

The broker said the strategic use of insurability can be a competitive advantage through adopting a forward-looking framework that considers quantifying risk with insurance-grade analytics, tracking market dynamics, planning for structural change and collaboration across sectors.

“Insurability should be treated as an ongoing strategic process, as opposed to a late-stage box to tick. By embedding it early and often, organisations can de-risk investments, increase their attractiveness to capital, and enhance their climate resilience.

“The strategic use of insurability can be a competitive advantage. It can determine which projects get built, which operations thrive, and which leaders are trusted in a new economy. Businesses and government should consider building internal capabilities to effectively leverage insurance and other contingent capital solutions.”