A new study published today by Marsh reveals that organizations are broadening and strengthening their approach to climate adaptation as their experience with extreme weather events increases, but significant gaps remain in formal strategy, systemic resilience, and the conversion of adaptation investment into outcomes in the insurance sector.
2026 Climate Adaptation Survey by Marsh analyzes responses from more than 120 organizations globally and reveals essential insights into how they are responding to evolving climate risks. According to the study, 43% of respondents suffered losses and/or disruptions due to extreme weather events in the last three years, with 60% reporting impacts resulting from multiple risks.
Compared with the results of 2025, floods remained the primary risk (62%), while heat stress rose to second place (36%), ahead of water stress (34%) and tropical storms (25%). “The opportunity in 2026 is to bridge the gap between assessment and action, linking risk information to business continuity, capital planning, operational decisions, and the insurance strategy,” said Amy Barnes, Marsh’s Director of Climate Strategy and Sustainability.
“Organizations are clearly moving in the right direction: they are assessing more risks, using more quantitative analyses, and looking beyond their own assets, taking into account the systems on which they depend. The next step is to translate these insights into funded and measurable adaptation strategies—and to communicate the evidence clearly, so that resilience investing can contribute to better risk and insurance outcomes.”
Practical resilience measures are advancing faster than insurer recognition
Organizations are taking practical steps, notably regarding business continuity and physical resilience. More than half (54%) reported having improved business continuity planning, while 40% reported investing in asset engineering, such as flood defenses. However, only 26% stated that their adaptation measures had been recognised in negotiations with insurers, with 62% of respondents expressing concern about the availability and/or cost of insurance for their assets, which could worsen over the next five years.
Risk assessment is becoming more sophisticated, but the formal strategy shows mixed results
The survey points to a broader and more structured approach to assessing future risks. Among organizations conducting assessments, 87% considered multiple hazards, reflecting the reality that climate impacts rarely occur in isolation. The survey notes that 77% of those assessing risks now combine qualitative and quantitative methods. This represents an increase from the 2025 study, which found that only 52% of organizations used this approach.
Organizations are also looking beyond their own assets, considering the systems they depend on when evaluating risk: critical infrastructure ranked third in the 2026 assessment, rising from fifth place in 2025, while suppliers ranked fifth, rising from sixth.
It is encouraging that the 2026 results show that the quality of assessment is beginning to translate into action: the majority of organizations (78%) are now considering or developing adaptation strategies and a quarter (26%) already has a formal plan in place. However, this leaves 22% of organizations without a known adaptation plan, suggesting that while progress is evident, there is still substantial work to be done.
Marsh recommends that organizations focus on five priorities:
- Model the combined effects of acute and chronic risks.
- Assess vulnerabilities and dependencies, at both asset and system levels.
- Establish measurable adaptation plans.
- Document resilience improvements so that they can be shared with insurers and financiers.
- Collaborate with governments, infrastructure providers, communities, and sector peers to address risks that transcend organizational boundaries.
