Relocation vs. Adaptation—Should Companies Abandon High-Risk Areas?

In the face of escalating climate-related disasters, businesses worldwide are grappling with a critical decision: should they relocate operations to safer regions, or adapt their infrastructure to withstand increasingly frequent and severe events? Hurricanes such as Milton, predicted to cost the insurance industry up to $100 billion, raise urgent questions about the long-term viability of operating in high-risk areas. This analysis explores the financial, operational, and strategic considerations involved in this decision, weighing the benefits of relocation against the challenges and opportunities of adaptation.