Regulation of property insurance pricing involves trade-offs that will determine how disaster risks impact households’ budgets. Allowing prices to reflect property-specific risks offers several benefits, but may cause a range of negative unintended consequences associated with declines in coverage.
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The views expressed in this paper are those of the authors and do not necessarily represent the views of the Federal Reserve Board of Governors or of any other person associated with the Federal Reserve System. We thank E. Brandsaas, C. Kousky, P. Liao and F. Moore for valuable feedback.
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Weill, J.A., Gourevitch, J.D. Prospects and challenges of risk-based insurance pricing for disaster adaptation. Nat. Clim. Chang. (2026). https://doi.org/10.1038/s41558-026-02577-1
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DOI: https://doi.org/10.1038/s41558-026-02577-1
