Leaders warn of insurance collapse, $25 trillion property risk tied to climate change

Speakers at a Senate-side event said climate change is creating systemic financial risks that threaten homeowners and the broader economy.

An opening speaker warned of what they called a "climate insurance collapse," saying the Federal Reserve, Aon Insurance and Freddie Mac have raised alarms. The speaker quoted The Economist’s estimate that climate risk could produce a $25,000,000,000,000 hit to global real estate markets by making insurance unaffordable, curtailing mortgages and driving down property values.

Leader Jeffries linked rising extreme-weather events to a homeowners-insurance crisis across multiple states, saying higher costs are eroding homeownership, "ripping away the possibility of homeownership for millions of Americans." He and Speaker Emerita Pelosi said failing to address climate risk would worsen affordability problems for families.

Speakers framed these economic risks as another rationale for strong climate policy, including support for clean-energy investments and pricing mechanisms that create market signals to reduce emissions. No legislative proposals were introduced at the event; the leaders urged continued public pressure and congressional action.