Reinforce Your Risk Management Strategy with Impact Re

As environmental catastrophes become more frequent and severe, the challenges for property casualty insurance continue to escalate. These policies, essential for financial protection against property damage and liability, are facing rising costs due to an uptick in climate-related disasters. With insurance companies shouldering much of this financial burden, the industry is actively seeking innovative solutions to mitigate these rising costs while promoting environmental sustainability.

One forward thinking initiative is the formation of Impact Re, Ltd., a first-of-its-kind group captive launched in 2023. This collaboration, spearheaded by Zurich North America, brings together businesses committed to sustainability-driven risk management, offering them a way to stabilize costs while mitigating environmental risks.

Recent Natural Disasters Highlight the Urgency

The U.S. has experienced an average of 18 environmental disasters annually, underscoring the growing financial strain on insurers and businesses alike. In just the last year, we’ve seen record-breaking extreme weather events that reinforce the urgency of sustainable insurance solutions.

• January 2024: The California atmospheric river storms led to historic flooding, landslides, and power outages, causing billions in damage and forcing thousands to evacuate.
• March 2024: The deadly tornado outbreak across the Midwest and South left widespread devastation, with states like Kentucky and Indiana seeing entire neighborhoods leveled.
• July 2024: Hurricane Beryl made landfall as an unprecedented early-season Category 5 hurricane, marking the strongest July storm on record and causing significant destruction in Texas and the Caribbean.
• September 2024: The Bridge Fire ignited in the Angeles National Forest, rapidly spreading over to 56,000 acres. The blaze destroyed at least 81 structures, including homes in Mount Baldy Village and Wrightwood, and led to widespread evacuations.
• January 2025: Southern California faced devastating wildfires, notably the Palisades Fire and the Eaton Fire. These fires, fueled by prolonged drought and strong Santa Ana winds, collectively burned thousands of acres, destroyed numerous homes and structures, and forced over 200,000 residents to evacuate.

Each of these catastrophic events underscores the urgent need for innovative risk management strategies that go beyond traditional insurance models.

Impact Re: A Model for Sustainable Insurance

Impact Re is not just another insurance solution—it’s a collaborative effort among sustainability-focused businesses to reduce risk exposure while advancing environmental responsibility.

As the world’s first sustainability-focused captive, Impact Re offers members the opportunity to:

• Align with like-minded businesses to create more stable insurance costs.
• Incentivize sustainable business practices that reduce environmental impact.
• Gain access to risk management resources that align with long-term climate resilience strategies.

By leveraging a captive model, members are empowered to take proactive steps in risk mitigation, fostering a more sustainable and financially secure future.

Collective Responsibility for a Resilient Future

The financial and emotional toll of climate disasters impacts individuals, businesses, and communities alike. Insurance is more than a financial safeguard – it’s a tool for societal resilience. As a collective, we must work toward protecting our natural resources and embracing proactive risk management strategies to build a more sustainable future.

Impact Re is already making waves, with13 members from seven different industries, and growing! If you’re looking for an innovative, sustainability-driven approach to risk management, we’d love to connect. Contact us today to learn how Impact Re can support your business in navigating the ever-evolving risk landscape.