Carlyle and Marsh explore how resilience investments can become measurable financial assets instead of simply being viewed as operating expenses. The paper argues that quantifying risk reduction can improve insurance underwriting, lower financing friction, and strengthen asset values as climate and natural catastrophe losses continue to rise.
Investing in Resilience
Carlyle
Steve Hatfield, Amy Barnes
Research
18 Pages
Key Takeaways
Protection gap: Natural catastrophes caused $318 billion in economic losses, with 57% uninsured, creating a $181 billion protection gap.
Investment urgency: The global resilience financing gap is estimated at $2.4 trillion annually through 2030, highlighting the scale of capital needed for adaptation.
Growing disaster costs: Climate related disasters have increased fivefold since the 1970s, while annual economic losses have risen to more than $300 billion, strengthening the case for resilience investments.