Insurance Pressures Are Reshaping Commercial Real Estate Risk Strategy
- ClearView Insider
- Jun 30, 2025
- 1 min read
Updated: Jul 25, 2025
Insurance Pressures Are Reshaping Commercial Real Estate Risk Strategy
Natural catastrophe (NatCat) losses now top $100 billion annually worldwide, according to EY’s 2025 Global Insurance Outlook. In Canada, insured damages reached a record $8.5 billion in 2024, with events like the Jasper wildfires, Calgary hailstorm, and Hurricane Debby highlighting the growing frequency and severity of climate-related risks.
This shift is hitting commercial real estate directly. Rising insurance premiums are increasing operating costs and compressing NOI, especially for properties in climate-exposed zones. Underwriting, asset valuations, and lease terms are increasingly tied to climate vulnerability and adaptive design.
Due diligence is expanding—beyond balance sheets—into climate risk modeling, zoning regulation, and infrastructure resilience. As insurers reevaluate how they price risk, CRE investors and landlords must recalibrate strategy, from building retrofits to lease flexibility to location analysis. Resilient, sustainable buildings are no longer just ESG-driven—they're critical to protecting long-term value.
Connect with ClearView: Wondering how climate-driven insurance shifts are impacting CRE valuation, underwriting, and leasing strategy in Calgary and beyond? Let’s talk: info@cvpartners.ca