Resilience bonds could serve as an insurance solution to address climate change risks

https://phys.org/news/2026-02-resilience-bonds-solution-climate.html

By calculating how much risk will be reduced through resilience improvements, insurance companies provide the necessary data for local governments to issue the bonds. These investments simultaneously enhance the insurer’s financial sustainability and enable the expansion of coverage to vulnerable populations and marginalized communities, who often suffer the most from slower recovery times and lack the capital for these resilience improvements.