A new report from FM highlights that many companies are missing key chances to protect themselves from extreme weather. The study, released in September 2025, reveals that although experts believe embedding risk engineering in new site designs is crucial for resilience, just 28% of businesses have fully adopted this practice.
The report, titled Ready for the Storm: Closing the Extreme Weather Resilience Gap, surveyed 800 risk decision-makers and 150 insurance brokers from industries including industrial, manufacturing, and technology. These companies range widely in size, with annual revenues from $250 million to over $10 billion.
The findings show that while companies are aware of the risks, their actions lag behind. Only 23% said they have fully chosen and installed equipment to withstand extreme weather, though brokers rank this as a top resilience step. Meanwhile, just 20% have redesigned interiors to manage floodwater safely, even though 61% of brokers recommend it. Cost is a major barrier. About 44% of risk managers say insurance premiums are too high to get full coverage. On average, companies expect insurance to cover only about half of the potential losses from severe weather events, while brokers believe it’s closer to 40%.
The report also found that 62% of businesses experienced at least one major disruption from extreme weather in the last three years. Risk managers estimate that such disruptions to supply chains, infrastructure, or customer operations could each cost them more than 8% of their annual revenue. Yet, most feel their insurance won’t cover more than half of those costs. Awareness of risks also varies. While nearly all risk decision-makers say they’re mostly or fully aware of their exposure, only 67% of brokers agree. An informal check found that 74% of respondents underestimated wind and flood risks where their key operations are located.
In 2024, FM’s engineers helped clients make 46,245 risk improvements, leading to a $1.05 trillion drop in expected losses. The company also provided almost $1.5 billion in membership and resilience credits.
The report encourages businesses to review their risk assessments regularly, apply resilience measures throughout their facilities’ lifecycles, and look at their supply chains and infrastructure carefully. It also suggests working closely with insurers and risk experts to better prepare for extreme weather.
With many businesses still holding back on engineering-based risk solutions, the question remains: Are cost savings taking priority over long-term safety against extreme weather? The conversation continues.