From Risk to Reward: New Research Finds Increased Payoff from Disaster Resilience Investments

September 04, 2025 at 07:02 AM EDT

Resilience spending saves jobs and lives, cuts GDP losses and protects communities from higher economic costs when disasters strike

Allstate, the U.S. Chamber of Commerce and the U.S. Chamber of Commerce Foundation today released new research showing that each dollar not invested in disaster resilience today could result in up to $33 of lost future economic activity. Higher levels of investment protect lives and property and reduce long-term costs for federal, state and local governments if a disaster strikes.

Beyond the Payoff: How Investments in Resilience and Disaster Preparedness Protect Communities builds on the partners’ 2024 study, The Preparedness Payoff.

The new research models the economic impacts of investment scenarios across five major disaster types and calculates impacts by disaster type.

Disaster Type	Cost of Not Investing in Resilience (per $1, after a future disaster)	Key Impacts from Lower Resilience Investment
Hurricanes	$7.84	Up to 131,000 jobs lost $24B GDP decline
Tornadoes	$25.15	14,500+ jobs lost $2.2B GDP decline
Wildfires	$21.87	9,800+ jobs lost $1.7B GDP decline
Droughts	$32.72	19,200+ jobs lost $3.6B GDP decline
Floods	$25.44	13,700+ jobs lost $2.3B GDP decline

Key findings include:

When communities reduce resilience investments, they risk facing more than 30 times that amount in lost future economic activity over the next decade.
Resilience funding offers economic protection and stabilizes local labor markets, regardless of size or type of disaster. In hurricane-prone areas, investment can prevent the loss of more than 70,000 jobs.
Local efforts matter. The report outlines six “Levers of Resilience” that local leaders can use to strengthen preparedness, from infrastructure upgrades to community engagement initiatives.

The report also features insights from emergency managers, engineers, and resilience experts, highlighting the need for cross-sector collaboration and streamlined processes to ensure rapid resource sharing, coordinated decision-making, and recovery efforts that are aligned with local priorities.

Rich Loconte, senior vice president, Government & Industry Relations at Allstate

“After more than 25 years on the ground with Allstate’s National Catastrophe Team, we know firsthand that 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.”

Marty Durbin, senior vice president, Policy at the U.S. Chamber of Commerce

“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. Resilience investments reduce costs and speed up recovery. The faster a community bounces back, the faster jobs and economic growth return.”

Marc DeCourcey, senior vice president at the U.S. Chamber of Commerce Foundation

“Coordination between the public and private sectors needs improvement when it comes to resilience and recovery efforts. Funding is essential, but so is making sure resources are used effectively and partners are working together to deliver the best outcomes.”

The full report is available here.

Supporting Communities and Small Businesses

This study adds to a growing portfolio of research and resources produced jointly by the U.S. Chamber of Commerce, Allstate and the U.S. Chamber of Commerce Foundation to strengthen community resilience.

The partnership builds on Allstate’s work to strengthen communities and protect customers before and after disasters and the U.S. Chamber and Chamber Foundation’s disaster response and resiliency solutions, which include training and resources to help businesses and communities prepare for and recover from disasters.

More information on the U.S. Chamber’s resilience policy and budget recommendations is in Appendix 3 in the report available to download here.

About Allstate

The Allstate Corporation (NYSE: ALL) protects people from life’s uncertainties with a wide array of protection for autos, homes, electronic devices, and identities. Products are available through a broad distribution network including Allstate agents, independent agents, major retailers, online, and at the workplace. Allstate is widely known for the slogan “You’re in Good Hands with Allstate.” For more information, visit www.allstate.com.

About the U.S. Chamber of Commerce

The U.S. Chamber of Commerce is the world’s largest business organization representing companies of all sizes across every sector of the economy. Our members range from the small businesses and local chambers of commerce that line the Main Streets of America to leading industry associations and large corporations.

They all share one thing: They count on the U.S. Chamber to be their voice in Washington, across the country, and around the world. For more than 100 years, we have advocated for pro-business policies that help businesses create jobs and grow our economy.

About the U.S. Chamber of Commerce Foundation

The U.S. Chamber of Commerce Foundation harnesses the power of business to create solutions for the good of America and the world. We anticipate, develop, and deploy solutions to challenges facing communities—today and tomorrow.