Milken Institute Report Calls for $200B+ Annual Climate Resilience Financing
Event summary
- Global disaster losses exceed $200B annually over the past decade, with uninsured losses accounting for over half
- Milken Institute and Marsh propose five financing models to attract private capital for climate resilience
- First US 'resilience' catastrophe bond launched in North Carolina for wind-resistant roofing
- LA Fires caused $76B–$131B in economic losses, with 70% of survivors still displaced one year later
- Report identifies policy and capital alignment pathways for strengthening communities against extreme weather
The big picture
The report highlights a growing disconnect between escalating climate risks and inadequate resilience investments. With insurance coverage shrinking in high-risk areas and recovery costs rising, the Milken Institute and Marsh argue that innovative financing structures are critical to mobilize private capital. The $27B revenue Marsh and its 95,000 colleagues bring to the table underscores the scale of expertise needed to address this systemic challenge.
What we're watching
- Capital Mobilization
- Whether private capital can be effectively deployed alongside government and insurers to close the resilience investment gap
- Policy Alignment
- The pace at which state policy playbooks will be adopted to enable proactive resilience investments
- Market Adoption
- How quickly the proposed financing models will be implemented in high-risk communities beyond North Carolina
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