forecasting 2025
Catastrophe planning and disaster recovery
Companies will need to prepare for severe weather
2024 saw nearly 350 catastrophic weather events globally with economic losses exceeding $310 billion and insured losses hitting $135 billion, according to the Swiss Re Institute. 2025 is expected to bring similar weather patterns, with a slow developing La Niña in the U.S. potentially leading to adverse conditions.
Considering the potential damages and costs associated with storms, flooding, blizzards and droughts around the country, comprehensive and robust insurance policies and risk management will be a key priority across industries.
Steve Powell
President | EFI Global, Inc.
Executive Vice President, Property Americas | Sedgwick
Staying prepared
Where threats of extreme cold exist, companies can prepare by winterizing facilities and having contingency plans that prioritize employee safety and maximize revenue streams. For countries that experience excessive heat or drought, having adequate water supplies on hand and implementing conservation measures are a must.
In addition, wetter-than-average conditions will create increased flooding and damage potential, something that occurred frequently across the globe in the second half of 2024. Companies should allocate more funding in 2025 to proper drainage systems, building security and updated equipment. This will become increasingly important for businesses as storm intensity grows.
Responding when disaster strikes
When disasters strike, companies will be focused on ensuring they have a claims team that can respond with:
- Greater emphasis on communication with insurance brokers and providers.
- Thoroughly detailed and clear documentation to expedite claims processes.
- Development of business continuity plans to minimize disruption.
- Remote work options in areas that see significant hurricanes and weather to ensure employee safety and operational consistency.
Post-disaster repairs
New strategies for recovery will emerge in 2025, specifically ones that optimize property building repairs by providing immediate responses, proper documentation and a focus on safety. Property owners and insurers will increasingly rely on managed repair, restoration and mitigation services next year, including repair concierge, contractor credentialing and mitigation bill review. Companies providing these services will look to leverage more digital tools for construction, such as new technology for billing and data management. They will also prioritize immediate response and documentation in instances of damage due to disaster, along with a continued focus on employee safety.
A climate-friendly future
As disasters lead to more frequent and costlier rebuilding and repairs for business and property owners around the world, new building methods will emerge specifically focused on sustainability and climate-friendly materials. This will be driven in 2025 by consumer demand, new environmental regulation and policy, technological advancements and corporate responsibility efforts.
Eco-friendly materials and energy-efficient technologies will become much more popular in America and have already seen significant adoption across Europe.
2025 will also bring a rise in prefabrication, modular construction and 3D printing to improve efficiency, cost savings and improved quality control. Smart buildings and infrastructure improvements, including IoT, AI, and big data, will also become crucial in enhancing construction processes and outcomes.
