Every dollar spent on disaster resilience can save communities up to $33 in avoided economic costs, according to a new report from the U.S. Chamber of Commerce, Allstate, and the U.S. Chamber of Commerce Foundation. This marks a significant increase from their 2024 finding that each dollar invested generated $13 in benefits.
The report highlights the growing impact of frequent and severe natural disasters across the United States, emphasizing an urgent need for stronger collective action to address climate risks. In 2024, the country experienced its fifth consecutive year with at least 18 billion-dollar disasters. The trend continued into 2025 with devastating wildfires in Southern California contributing to record-high global insured losses for the first half of the year.
By modeling five types of disasters—hurricanes, tornadoes, wildfires, droughts, and floods—the study found that robust investments in resilience could significantly reduce GDP losses and job cuts. For hurricane-prone regions specifically, higher investment could prevent as much as $13.2 billion in losses and protect more than 70,000 jobs.
The report concludes that “preparedness is not just a safety measure – it’s a local economic development strategy.” Rich Loconte, senior vice president and deputy general counsel for government and industry relations at Allstate, added: “Preparedness is as much about plans as it is people. It’s supporting a local nonprofit to retain its employees and keeps its doors open after a disaster, working with civic leaders to develop recovery plans that minimize rebuilding costs, and educating community members on proactive investments that help better weather storms.”
Recommendations provided by the report include adopting hazard-resistant building codes like those meeting Insurance Institute for Business & Home Safety’s FORTIFIED standards; updating zoning based on current risk data; creating dedicated funds for disaster mitigation; launching public risk awareness campaigns; and fostering partnerships across sectors and jurisdictions.
A survey released alongside the report found most resilience stakeholders believe collaboration between public and private sectors needs improvement. More than half cited insufficient resources and unclear decision-making processes as barriers to effective coordination.
While state and local governments are seen as central to preparedness efforts, 58 percent of respondents said federal involvement remains crucial at every stage—especially for financial assistance. Many community projects remain stalled due to delays in federal grant disbursement totaling $882 million.
“As the cost and economic toll of disasters continue to increase, leaders at all levels of government should know that investments in infrastructure resilience will go a long way in protecting and preparing local communities,” said Marty Durbin, senior vice president of policy at the U.S. Chamber of Commerce. “Resilience investments reduce costs and speed up recovery. The faster a community bounces back, the faster jobs and economic growth return.”
