New Analysis Reveals Critical "Measurement Gap" in Insurance Industry

A new analysis released reveals a stark disconnect between the insurance industry’s climate commitments and their ability to measure and track progress toward those goals.  

The Measurement Gap: A Deep Dive into Climate Risk Reporting in the U.S. Insurance Sector  shows a consistent inability among insurers to translate climate awareness into measurable accountability. Among the 45 insurance groups analyzed – those providing information across all climate risk disclosure categories – none of the insurers provide the emissions targets necessary to track progress toward their climate commitments, despite 87% establishing comprehensive climate targets. 

The analysis, conducted with AI-powered sustainability intelligence provider Manifest Climate, evaluated insurance company responses against the Task Force on Climate-related Financial Disclosures (TCFD) framework. 

Key findings from the report: 

• Limited target setting adoption: Companies are providing only minimal reporting on emissions targets 

• Critical gap in indirect greenhouse gas (GHG) emissions: Near-complete absence of reporting for indirect GHG emissions, despite these representing the majority of insurers’ climate impact 

• Weak progress tracking: Even when insurers do set climate goals, they’re not monitoring whether they’re actually meeting them or learning from what works and what doesn’t 

• Analytical capacity disconnect: While insurers have adopted technologies for scenario analysis, these same capabilities are not being deployed for basic measurement requirements such as portfolio exposure to physical climate risks, tracking financial impacts from climate-related claims, or measuring the effectiveness of adaptation investments. 

This analysis comes as the insurance industry confronts unprecedented challenges from increasingly extreme weather events. The global protection gap – the difference between economic losses and insured coverage – is projected to increase by 5% to $1.86 trillion in 2025. 

“The insurance industry stands at a critical inflection point,” said Dr. Jaclyn de Medicci Bruneau, Director of Insurance at Ceres Accelerator for Sustainable Capital Markets and lead author of the report. “Insurers that continue to delay comprehensive metric and target development risk being unprepared for the climate and regulatory realities that are rapidly emerging. Conversely, those that embrace measurement excellence will be best positioned for improved investor confidence, superior decision-making capabilities, and market differentiation.”   

This analysis is the companion report to Ceres’ 2025 analysis climate disclosures from 526 insurance groups representing over 1,700 companies, following the TCFD framework’s four pillars: governance, strategy, risk management, and metrics and targets. 

About Ceres Accelerator for Sustainable Capital Markets  

The Ceres Accelerator for Sustainable Capital Markets is a center within Ceres that aims to improve the practices and policies that govern capital markets by engaging federal and state regulators, financial institutions, investors, and corporate boards to act on climate risk as a systemic financial risk. For more information, visit ceres.org/accelerator.