Focusing on Disaster Costs Before Rather Than After They Happen
Andrea Wells, Insurance Journal: As the costs to the government and the insurance industry mount, more people in the nation’s capital, local governments and the insurance industry are calling on government and the insurance industry to refocus on what can be done before a disaster hits to contain costs and save lives. While the insurance industry plays an important role in recovery from hurricanes, storms, tornadoes and wildfires, insurance covers only a part of all disaster-related losses. In 2012, the United States bore about $119 billion of total economic damage from disasters and private and public insurance paid for about half of that damage in the U.S., according to Swiss Re.
The Zurich Foundation report, part of a multi-year academic cooperation between Zurich, the Center for Risk Management at the Wharton School of the University of Pennsylvania and the International Institute of Applied Systems Analysis (IIAS), proposes a framework to measure the ability of communities to withstand floods, quantify the success of flood resilience efforts and demonstrate the benefits of pre-event risk reduction as opposed to post-event disaster relief. Read more.