New Cake & Arrow report explores the impact of climate change on homeownership and what insurance can do to cultivate climate resilience among policyholders

Climate change has been on our collective radar for decades. But only in recent years has it come to be seen as an existential threat— not only to our planet and the people who live on it, but more specifically to the insurance industry, which exists to protect individuals from unexpected emergencies and damage to their property, homes, bodies, and more— all which are at greater risk due to climate change. How can the insurance industry meet the needs of the moment for its policyholders while still protecting its bottom line?

Today, Cake & Arrow, a UX Design and Product Innovation agency for the insurance industry, published a new report based on qualitative research conducted with homeowners from across the country who have been impacted by climate change. The report digs into how homeowners perceive risks related to climate change, what role they expect insurance to play in protecting them, and puts forward opportunities for insurance and principles for the industry at large regarding how to better support homeowners in this new climate reality and cultivate climate resilience.

“For too long the insurance industry has conceived of homeowners insurance as simply a matter of covering claims,” explained Josh Levine, Cake & Arrow founder and CEO. “But in the new climate reality, in which climate-related disasters are no longer the exception but the norm, homeownership is changing. Homeowners are looking for a partner, not just to cover them in case something happens to their home, but to help them better mitigate the risks of climate change in the first place–long before a claim is filed. So much of the industry conversation right now is focused on risk mitigation for the insurance industry, not its customers, when in fact, the industry is missing an important opportunity to work with homeowners to make them ‘better risks,” which, if they can succeed, will be a win-win for the industry and its policyholders.”

For more homeowner stories, insights from our research, and tangible opportunities for the insurance industry to better support homeowners through climate change, download the full report:

About Cake & Arrow

UX Design and Product Innovation for Insurance. At Cake & Arrow, we believe empathy sparks opportunity. Our human-centered design approach helps carriers, distributors, and service providers create breakthrough digital experiences that drive results. For more than 20 years, we’ve helped the insurance industry make buying, selling, and servicing insurance better for everyone, by design.

Founded in 2002, Cake & Arrow has partnered with leading Fortune 500 companies including MetLife, Citigroup, Travelers, Chubb, and The General as well as recognized leaders in retail including Bose, Lowe’s, KIND snacks, and Saks Fifth Avenue.

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