Climate-driven hazards—floods, windstorms, wildfire, extreme rainfall—are no longer distant threats. They are current and compounding risks for commercial real estate owners and insurance providers alike. Losses are mounting. Coverage is tightening. Premiums are rising. And the data gap is widening. Insurers ncreasingly demand verifiable evidence that policyholders are mitigating risk. At the same time, commercial property owners need reliable analyses to justify capital expenditures on resilience retrofits—especially when trying to quantify ROI and protect asset value. This is where the new ASTM Property Resilience Assessment Standard (E3429-24) comes in. It offers a common framework and trusted methodology to build an evidence base—one that meets both parties’ needs for risk reduction, financial justification, and communication. The Dual Need: “Evidence-Based Resilience” A recent industry roundtable highlighted the shared challenge:
“When it comes to rising risk, insurers and the commercial real estate industry are in the bullseye together.” –
Rosemarie Grant, ULI Resilience Summit
Two unmet needs were repeatedly voiced:
• Insurers need quantified data showing what actions the insured has taken to control losses and improve resilience.
• Property owners need credible analysis to understand the ROI and risk-reduction benefit of retrofitting or upgrading buildings against climate hazards.
These needs are two sides of the same coin—each demands a trustworthy, verifiable evidence base
Enter ASTM E3429-24: A Standardized Property Resilience Assessment (PRA)
The ASTM PRA provides a consistent and systematic approach to assessing property-level resilience against
natural hazards, including those made more severe by climate change. It complements existing standards like the
ASTM Phase I Environmental Site Assessment (E1527) and the Property Condition Assessment (E2018), and is
designed to serve stakeholders across real estate and insurance markets.
The PRA process has three stages:
1. Hazard Identification – What risks exist at this property (e.g., flood, wildfire, wind)?
2. Risk and Vulnerability Evaluation – How exposed and prepared is the property to withstand and recover from those hazards?
3. Resilience Measure Identification – What feasible actions or retrofits can meaningfully reduce that risk?
Critically, the PRA includes on-site evaluation by trained professionals, and it incorporates both engineering
and financial perspectives. The process concludes with a recommended menu of resilience measures that reflect
real-world feasibility and cost.
How the PRA Supports Commercial Real Estate Owners
For owners and investors, PRA offers a roadmap for informed capital planning:
• Quantify risk before the next event strikes.
• Compare cost and benefit of resilience retrofits.
• Evaluate ROI in terms of damage avoidance, reduced downtime, tenant satisfaction, and market value protection.
• Engage insurers with concrete evidence to negotiate better coverage and more predictable premiums.
For example, a PRA might determine that a $250,000 floodproofing measure could avoid millions in damages in a 100-year storm scenario—especially for vulnerable spaces like garages, lobbies, or mechanical rooms. How PRA Supports Insurance Providers
For insurers, the PRA helps bridge the verification gap:
• Provides independent, third-party assessments of risk mitigation.
• Offers a standardized method for evaluating hazard exposure and
• resilience.
• Enables transparent, data-driven underwriting and premium-setting.
In some cases, such as with FM Global, insurers already offer “resilience credits” (5% premium discounts) for
policyholders who implement certified retrofits. PRA supports this by supplying the certification backbone—
through documentation, inspection, and performance verification during what RiskFootprint™ calls the PRA
Plus 3™ phase (implementation and quality assurance)…
