From Risk to Resilience: Liberty Mutual Climate Transition Center Advances Conversations on Physical Risk in 2025

As more global public-private organizations look to understand the role adaptation will play - in addition to mitigation - to combating climate change, Liberty Mutual Climate Transition Center continues to share the industry's significant risk expertise to increase climate resilience for communities. Across research and convenings in 2025, the Climate Transition Center emphasized the industry's expertise in evidence-based risk management, cross-sector collaboration, and the need to mobilize more capital toward adaptation funding.

Shared Insurance-Sector Expertise for Managing Physical Risk

The Climate Transition Center's 2025 research agenda underscored the growing urgency of managing physical climate risk and the expertise that the insurance industry can bring to broader public-private conversations.

• Climate Transition Center also contributed physical risk insights and resilience expertise to the Atlantic Council Climate Resilience Center's "Resilience by Design: Strategic Actions for Climate Adaptation." Recognizing that extreme weather is felt locally, the paper offered an accessible, action-oriented blueprint for community leaders. To catalyze implementation, Climate Transition Center and the Atlantic Council convened an invite-only discussion during New York Climate Week, bringing together community stakeholders and NGOs to translate strategy into near-term steps.
• Co-published with Swiss Re, "Wildfire Risk Reduction in a Changing Climate " examined how rising temperatures, shifting precipitation patterns, and expanding wildland-urban interfaces are reshaping wildfire exposure. The paper highlighted approaches that blend risk analytics, land-use planning, community mitigation, and insurance incentives to reduce losses and protect lives.
• To help organizations conceptualize and act on physical climate risk, the Climate Transition Center released "Uncovering the Complexity of Physical Climate Risk: Insights from the Insurance Sector." Drawing on insurance's deep experience in quantifying and transferring risk, the paper explored governance, data gaps, scenario analysis, and the importance of aligning risk management with investment and operational decisions. Its goal: a pragmatic framework that moves physical risk from abstract concern to managed reality.

Joined financial services peers in actionable conversations on managing physical risk and catalyzing private-sector energy transition opportunities

Leveraging the 2025 research insights, the Climate Transition Center brought the insurance sector perspective to key financial sector conversations, further advancing the cross-sector knowledge sharing.

• In July, Climate Transition Center hosted the Institute of International Finance (IIF) workshop on Climate Resiliency Planning and Adaptation Finance, uniting insurance, banking, and investment experts around approaches to managing physical risks and strengthening financial system resilience. The dialogue continued in October during a similar panel at IIF's annual meeting in Washington, D.C.
• With the physical impacts of climate change already costing the global economy over $1.4 trillion annually, Climate Transition Center engaged in conversations around adaptation readiness by joining the BloombergNEF (BNEF) London Summit panel "Adapting and Assessing Resilience in a Warming World" on how ways investors and companies can assess risk, gauge resilience, and identify opportunities.
• In addition to the risks, the transition to a lower-carbon economy also presents opportunities for innovation. During the BNEF London Summit, the Climate Transition Center also convened the roundtable "Insuring the Transition: De-Risking Projects to Deliver Returns," which explored how insurers, developers, and financiers can craft private-market risk solutions to building confidence in first-of-a-kind projects (like advanced nuclear, carbon capture, and hydrogen) and enabling scale-up and more resilience for the full life cycle of projects.

Together, these efforts reflect the Climate Transition Center's goal to advance the collective understanding of climate-related risks, impacts, and resilience. And ultimately, turning climate risk into actionable insights.