Category Archives: Disaster Resilience

IBHS Ranks Building Codes as Above-Average Hurricane Season Approaches

Building codes are critical to disaster mitigation, as well as to enabling families, communities, and businesses to bounce back from natural and man-made catastrophes.  The Insurance Institute for Business and Home Safety (IBHS) “Rating the States” report has become an important resource for comparing the quality of these codes and of states’ enforcement of them.

Published every three years, “Rating the States” evaluates the 18 states along the Atlantic and Gulf coasts, all vulnerable to catastrophic hurricanes, based on building code adoption, enforcement, and contractor licensing.

The 2021 Atlantic hurricane season is expected to be another “above-average” one.

“Damage reduction that results from the adoption and enforcement of building codes helps to keep people in their homes and businesses following a natural or manmade disaster, reduces the need for public and private disaster aid, and preserves the built environment,” IBHS writes in the most recent edition of the report. It cites research following Hurricane Charley in 2004 that found code improvements adopted in 1996 in Florida resulted in a 60 percent reduction in residential property damage claims and a 42 percent reduction in cost of claims.

Benefits of strong, uniform, well-enforced statewide codes are diverse and include:

  • Giving residents a sense of security about the safety and soundness of their buildings,
  • Preserving economic resources of a community and reducing post-disaster government spending,
  • Protecting first responders during and after fires and other disaster events,
  • Incorporating new best practices and cost efficiencies, and
  • Reducing solid waste in landfills from homes that are damaged or destroyed during disasters.

In the 2021 report, no state achieved a perfect rating based on the IBHS 100-point scale, though several states received high scores, including:

  • Florida (95 points)
  • Virginia (94 points)
  • South Carolina (92 points) and
  • New Jersey (90 points).

Other states that performed well were Connecticut (89 points), Rhode Island (89 points), North Carolina (88 points), Louisiana (82 points), Massachusetts (78 points), and Maryland (78 points).

The 2021 edition also includes information from the nonprofit Federal Alliance for Safe Homes (FLASH) to support consumer awareness and response to local building codes in their area.  Inspect2Protect.org offers a free building code look-up tool available to all homeowners.

“With more Americans living in harm’s way, it is even more critical for residents and communities to have the information they need to take action,” said Triple-I CEO Sean Kevelighan. “2021’s Rating the States report is essential reading for anyone who resides in a hurricane-prone state and wants a definitive assessment of its building codes.”

More information from Triple-I

Hurricane Season: More Than Just Wind and Water

Flood: Beyond Risk Transfer

Modern Building Codes Would Prevent Billions in Catastrophe Losses

California Earthquakes: How Modern Building Codes Are Making Safer, More Resilient Communities

Millions Saved in Japan by Good Engineering and Government Building Codes

Triple-I CEO: Insurance Leading on Climate Risk

Triple-I CEO Sean Kevelighan recently briefed regulators on the steps U.S. insurers are taking to reduce climate-related risks as weather-related catastrophes increase in frequency and severity.

Environmental, Social, and Governance (ESG) issues are in the insurance industry’s DNA, Sean said in a panel discussion hosted by the National Association of Insurance Commissioners’ (NAIC) Climate and Resiliency Task Force.  “While ESG priorities may seem new to many industries, insurers have long been involved in understanding and addressing these and other risk factors as a fundamental part of doing business.” 

Speaking on the first day of the 2021 Atlantic hurricane season, Sean pointed out investment decisions made by leading insurers that he said will likely lead to carbon emission reductions.

“Insured losses caused by natural disasters have grown by nearly 700 percent since the 1980s, and four of the five costliest natural disasters in U.S. history have occurred over the past decade,” he said.

To illustrate the point, he showed an inflation-adjusted chart showing an annual averageof$5 billion in natural disaster-caused insured losses incurred in the 1980s. That figure jumped to an annual average of $35 billion in the 2010s, the same Triple-I analysis found. 

U.S. insurers paid out $67 billion in 2020 due to natural disasters. The insured losses emerged in part as the result of 13 hurricanes, five of the six largest wildfires in California’s history, and a derecho that caused significant damage in Iowa

Given the millions of Americans who live in harm’s way, the Triple-I launched its Resilience Accelerator initiative to help people and communities better manage risk and become more resilient, Sean said. The goal of the Triple-I’s Resilience Accelerator is to demonstrate the power of insurance as a force for resilience by telling the story of how insurance coverage helps governments, businesses and individuals recover faster and more completely after natural disasters.

“The insurance industry’s focus on resilience is starting to pay dividends as more Americans recognize the very real risks their residences face from floods, hurricanes, and other natural disasters,” Sean continued.

A Triple-I Consumer Poll released in September 2020 found 42 percent of homeowners had made improvements to protect their homes from floods and 39 percent had done the same to protect their homes from hurricanes.

Download Sean’s slides

Flood Pictures Worth More Than 1,000 Words

One of the benefits of social media is the fact that it reminds you what was on your mind several years earlier. Today I was reminded of the horrific flooding in Ellicott City, Md., that occurred three years ago this week.

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Water rushes through Main Street in Ellicott City, MD, 2018

This event resonated for me because I had friends living there, and I lived in a similarly situated flood-prone town. The images from Ellicott City recalled for me the damage much closer to home, in Bound Brook, NJ, when Tropical Storm Floyd dropped over 13 inches of rain and the Raritan River crested at above 42 feet, inundating the downtown and sparking fires as electrical systems shorted out.  

My little town of Dunellen had dodged a major bullet, I realized as I watched on TV as firefighters in boats responded to the devastation next door.  Our basement, turned temporarily into an indoor swimming pool, seemed a minor inconvenience next to the losses in Bound Brook and elsewhere.

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Firefighters battle a fire in flood-ravaged Bound Brook, NJ, 1999

A few years later, my region would be visited by similarly shocking images in the aftermath of Hurricane Irene and Superstorm Sandy.

Rollercoaster at Seaside, NJ, after Superstorm Sandy, 2012

We’ve written a lot about flood risk, the flood protection gap, and the need for a resilience mindset to prevent damages and loss wherever possible and help families, businesses, and communities bounce back from unavoidable disasters. But sometimes a few images can persuade more eloquently and effectively than all the words in the world.

Learn More From the Triple-I Blog

Flood: Beyond Risk Transfer

Partnering to Improve Flood Resilience

FEMA’s New Approach to Flood Risk Will Make Insurance Program Fairer

Floods, Freezing, Other Extreme Weather Highlight Need for Planning And Insurance

Study Quantifies Future Climate Change Impact on Flood Losses

Study Supports Case for Flood Mitigation as World Warms

Expanded Triple-I Flood Risk Maps Provide Richer Perspective

If It Can Rain, It Can Flood: Buy Flood Insurance

Ahead of Hurricane Sally’s Rains, Many Lack Flood Insurance

A ‘Sea Change’ in Florida’s View on Climate Risk?

Florida Governor Ron DeSantis last week signed two bills that lawmakers say will leave Florida better prepared for future flooding and sea level rise.

The legislature’s approval of these measures and the governor putting his signature on them is one of those moments that seem to mark a real change in awareness of and attitude toward this often-minimized risk. As the Tampa Bay Times points out, “Florida’s legislature for most of the last decade has taken little action and entertained hardly any public discussion about sea level rise.”

The bills, SB 1954 and SB 2514, will — among other things — set aside hundreds of millions of state dollars for flooding infrastructure projects. It requires the Department of Environmental Protection to prepare a flooding and resiliency plan and provides up to $100 million a year to communities that identify areas along the coast and other waterways that are at risk from sea level rise.

“This is a really significant amount of resources,” DeSantis said at a bill signing ceremony in Tarpon Springs. “We’re really putting our money where our mouth is when it comes to protecting the state of Florida, particularly our coastal communities, from the risks of flooding.”

On the leading edge of sea level rise

Florida’s 1,350 miles of coastline is the lifeblood of its tourism industry. Given the fact that much of the state sits at or near sea level on a foundation largely composed of porous limestone, it is particularly vulnerable to the threat of rising seas. Some areas of the state are already seeing flooding on clear days during particularly high tides, according to the Associated Press.

The magnitude of the threat is illustrated by the fact that three Florida-based insurers recently announced that they will not be renewing more than 53,000 property policies as of June – just as the 2021 Atlantic hurricane season begins. The first named storm of the season — Subtropical Storm Ana — formed early on May 22, northeast of Bermuda.

Florida statute Chapter 224 Part III allows insurers to cancel policies when the company would be placed in a hazardous financial situation due to an uptick in claims after hurricane damage or attorney’s fees to defend itself over fraudulent adjuster claims.

Dulce Suarez-Resnick, past president of the Latin American Association of Insurance Agencies, said this kind of widespread cancellation is common after subsequent years of heightened hurricane activity.

“It’s not the end of the world or that they’re bad companies,” Suarez-Resnick said. “It’s that these companies were weakened by prior storms and the bill for the reinsurance got heftier. That’s where we are today.”

As we’ve previously written, many experts consider the current system for managing and mitigating flood risk to be generally unsustainable. Insurers increasingly recognize that risk transfer is not enough and that a resilience mindset is required that demands more than new insurance products. Innovation and technology, along with public-private partnerships, are key components of any resilience strategy that is going to be effective.

Thanks to the insurance industry’s longtime focus on assessing and quantifying catastrophe risk and the rise of sophisticated modeling capabilities, insurers are ideal partners for addressing these evolving risks.

Learn More on the Triple-I Blog:

ESG Is in Insurers’ DNA

Man-Made and Natural Hazards Both Demand a Resilience Mindset

White House, FEMA Resilience Officials Speak at Triple-I Event

Flood: Beyond Risk Transfer

Partnering to Improve Flood Resilience

Climate Risk Is Not a New Priority for Insurers

Above-Average 2021 Atlantic Hurricane Season Predicted

FEMA’s New Approach to Flood Risk Will Make Insurance Program Fairer

Floods, Freezing, Other Extreme Weather Highlight Need for Planning And Insurance

Study Quantifies Future Climate Change Impact on Flood Losses

Why Do Disasters Keep “Surprising” Us? A Resilience Culture Would Aid Preparation

Community Catastrophe Insurance: Four Models to Boost Resilience

Insurers Are Addressing Climate Risks

Study Supports Case for Flood Mitigation as World Warms

Spotlight on Marianne Angeli Rodriguez, Contemporary Painter and Gallery Owner

By Katrina Cheung, Communications Manager, Triple-I

As we continue to celebrate AAPI Heritage Month, Triple-I is spotlighting Filipino-American gallery owner, painter, and Covington, Louisiana-native, Marianne Angeli Rodriguez.

Rodriguez spent much of her life living abroad in West Africa, Central America, Europe, and Asia before settling in the U.S. She earned her bachelor’s in media studies and anthropology from the City University of New York at Hunter College, and a degree in fashion design from FIT. After being laid off from two different fashion industry jobs, she worked as a freelancer creating fashion and beauty sketches for magazines, in addition to taking client commissions. She eventually outgrew working in small-scale and shifted to working on larger canvases.

Rodriguez’s art has garnered attention from numerous magazines and has led to various collaborations.

Her work is on permanent display in numerous public installations, including the Sloan Kettering Cancer Centers in New York, Southern Hotel Covington, Magnolia Hotel New Orleans, Shirley Ryan AbilityLab Chicago, Nolé restaurant in New Orleans, and the New Orleans Louis Armstrong International Airport.

We had the pleasure of speaking to Rodriguez about her gallery, her work, how she remained resilient in the face of the pandemic and other setbacks, and how she protects her business from natural disasters.

Tell us about your work and your gallery. How did it all start?

Shortly, after I was laid off, a job opportunity for my husband moved us to a different city and I dedicated the following year to painting out of my dining room. I developed a website to sell my work online, and soon after I rented out a studio to work out of. After three years of working diligently and growing my client-base, I outgrew that space and decided on a new, more prominent, gallery location around the corner. At this point my husband joined me to work on the business full-time as my business partner and gallery director. We signed the lease to this new location two weeks before COVID shutdowns.

Wow, 2020 was such a tough year for small businesses so I can only imagine how daunting it was for you and your husband to open the gallery during the pandemic! Despite the unknown and challenges that the pandemic presented, it seems like the gallery is thriving.

Can you talk about some of the obstacles you’ve faced since opening the gallery and how you have been able to overcome them?

Since we took on a much larger brick and mortar space right in the beginning of the pandemic, our main challenge was the disappearance of foot traffic. We realized that our online presence and web shop was going to be our saving grace so we re-strategized and poured our efforts into marketing, re-designing our e-commerce platform, and becoming more engaged on social media. We also tapped into local partnerships and were able to offer more products and services including custom framing and high-quality canvas prints to diversify our offerings and meet the needs of various art buyers. Since everyone was quarantined and taking on home-improvement projects including decorating, 2020 turned out to be a prosperous year for us as a small business. 

Given that you live in a hurricane-prone area, in what ways have you safeguarded yourself and your gallery property against extreme weather?

During hurricane season, with any imminent threats, our typical drill is to secure the outer perimeter of the business by removing objects (like our hanging gallery signage) and using sandbags at entry points to safeguard against flooding. In case of emergency, we have insurance and an evacuation plan.

Art is such an important part of our history and our communities. It tells us stories from all walks of life, including those that might not be told often in mainstream media.  As an artist, what do you hope to convey to people with your art?

I’m a colorist, so first and foremost what I wish is to elicit feelings of joy, delight, and positive energy when viewers first come across my work. As a minority based in the South, it’s been a privilege to sprinkle in bits of my Filipino heritage in both the imagery and the titles/stories behind the work – it’s a way to invite others to receive new insights without necessarily speaking so directly about it, and I love the way it opens the door of deeper connections and curiosity.    

There’s been a consensus in the AAPI community that many have felt cultural and societal pressures to pursue STEM-related careers.

What advice do you have for anyone that wants to follow their dreams, but feel pressure to follow a certain career path based on societal pressures or maybe even pressure from their family?

My advice for anyone wanting to go “against the grain” is to be fully prepared to and willing to take on the rollercoaster that may lie ahead. Research your industry, know your competition and stay ahead with technology and social media. Take one step at a time, and fully immerse yourself in each evolving chapter. Take note of the hard lessons, be thankful for them as they’re there to help you move closer to the best most professional version of yourself/your business. Build trust by over-delivering on customer service. Practice gratitude daily.

Were there other times in your life that you have personally had to remain resilient despite the challenges ahead? If so, can you share what those experiences were and how that has helped you as an artist and businessowner?

Years ago, when I had just gotten laid off from my job and was dipping my toes into the artworld doing local art fairs, my car was stolen and everything I had invested in for my new venture was gone. It was devastating. My family urged me to move back home and consider a career in the corporate world. I stuck it out and stayed and rebuilt from the ground up. That experience gave me the tenacity I so needed to be fully independent, committed and driven in pursuing my creative path. Later, as I grew more serious in my practice, I got rejected from the galleries I wanted so badly to land a relationship with, but I continued to work on my art, perfecting my process and investing in courses to widen my business knowledge, and ultimately opened -and now operate- a gallery of my own.

What has been the most rewarding part of being a small businessowner?

The most rewarding part of being a small business owner, specifically as an artist, is having complete autonomy over the creative vision being released out into the world. Having the ability to positively impact your community and brighten someone’s day is both empowering and humbling.

Ten years after deadly tornado, Joplin Missouri is disaster-ready

May 22 marks the ten-year anniversary of the Joplin, Missouri, tornado – the deadliest single tornado event in U.S. history. In these videos, Triple-I’s Scott Holeman shows how the people of Joplin have recovered and become more resilient.

The EF-5 tornado destroyed thousands of homes and businesses and was the largest insurance event in Missouri history, with insured losses totaling roughly $9 billion (in 2021 dollars).

Survivors of the 2011 tornado say many lessons were learned after the devastating storm. Local insurance experts say the disaster taught the community about the importance of renters insurance and keeping homeowners policies updated. 

Today, many Joplin residents prepare a “go-kit” whenever there’s a storm threat.

Numerous public facilities, businesses and residences have added enhanced safety modifications. The high school and hospital are prominent examples.

Bracing for Another Brutal Wildfire Season

Wildfires in California and across the West are starting earlier and ending later each year.  The ongoing drought worsened last week, with every part of the state in moderate drought or worse.

After a 2020 fire season that Janet Ruiz, Triple-I’s California-based director of strategic communications, called “anything but normal,” this year’s season may be even worse.

Warmer spring and summer temperatures, reduced snowpack, and earlier spring snowmelt create longer, more intense dry seasons that make forests more susceptible to wildfire. The fire season’s length is estimated to have increased by 75 days across the Sierras and seems to correspond with an increase in the extent of forest fires across the state.

“Hots are getting hotter”

California Gov. Gavin Newsom recently expanded a drought emergency declaration while seeking more than $6 billion in multiyear water spending.

“The hots are getting a lot hotter in this state, the dries are getting a lot drier,” he said. “We have a conveyance system, a water system, that was designed for a world that no longer exists.”

California Insurance Commissioner Ricardo Lara has called for property insurers across the state to play a larger role in boosting wildfire preparedness among homeowners and businesses by providing more wildfire mitigation incentives. He spotlighted eight insurance companies in the state and the California FAIR Plan, which offer discounts to policyholders that have taken adequate steps to harden homes and mitigate wildfire risk.

This group represents only 13 percent of the state market, and Lara hopes the figure will rise significantly this year.

“Insurance companies support and echo Commissioner Lara’s call for mitigation,” Mark Sektnan, vice president of American Property Casualty Insurance Association (APCIA), said in a statement on behalf of APCIA, the Personal Insurance Federation of California (PIFC), and the National Association of Mutual Insurance Companies (NAMIC).  “Insurers are working with scientists and modelers to further the science of understanding how to better mitigate wildfire risk and understanding the value of various mitigation programs and efforts. While we cannot stop wildfires, we are learning how to mitigate the risks and are moving towards understanding and quantifying the value of individual and community mitigation. Insurers encourage homeowners, renters and businesses to get their property and finances ready for wildfires, as we are facing another dry, hot summer.”

Mostly caused by people

As much as 90 percent of wildland fires in the United States are caused by people, according to the U.S. Department of Interior. Some human-caused fires result from campfires left unattended, the burning of debris, downed power lines, negligently discarded cigarettes and intentional acts of arson. The remaining 10 percent are started by lightning or lava.

The Insurance Institute for Business and Home Safety provides recommendations for reducing the likelihood of your home catching fire, including noncombustible siding, decking and roofing materials; covered vents; and fences not connected directly to the house. In addition, combustible structures in the yard such as playground equipment should be at least 30 feet away from the house and vegetation 100 feet away.

But given weather, climate, and population trends, more than individual planning and risk transfer through insurance will be required to head off wildfire risk and bounce back from events. Innovation and a resilience mindset on the part of governments, businesses, homeowners, and communities will need to take hold.

Want to learn more about wildfire mitigation and resilience? Register for “Wildfire Ready: How Do You Prepare Your Home and Finances for Wildfires?” on May 20 at 10 a.m. (PT)

Man-made and Natural Hazards Both Demand
a Resilience Mindset

This weekend’s ransomware attack that forced the closure of the largest U.S. fuel pipeline provides another powerful illustration of the need for a resilience mindset that applies to more than just natural catastrophes.

Colonial Pipeline Co. operates a 5,500-mile system that transports fuel from refineries in the Gulf of Mexico to the New York metropolitan area. It said it learned Friday that it was the victim of the attack and “took certain systems offline to contain the threat, which has temporarily halted all pipeline operations.”

Individually, the event demonstrates the threat cybercriminals pose to the aging energy infrastructure that keeps the nation moving. More frighteningly, though, it is yet another example of how vulnerable the complex, interconnected global supply chain is to disruptions of all kinds – a message that isn’t lost on risk managers and insurers.

Last year, a ransomware attack moved from a natural-gas company’s networks into the control systems at a compression facility, halting operations for two days, according to a Department of Homeland Security (DHS) alert

The DHS described the attack on an unnamed pipeline operator that halted operations for two days.  Although staff didn’t lose control of operations, the alert said the company didn’t have a plan in place for responding to a cyberattack.

“This incident is just the latest example of the risk ransomware and other cyber threats can pose to industrial control systems, and of the importance of implementing cybersecurity measures to guard against this risk,” a CISA spokesperson said at the time.

Not just energy companies

It isn’t only energy and industrial companies that need to be paying attention. According to cyber security firm VMware, attacks against the global financial sector increased 238 percent from the beginning of February 2020 to the end of April, with some 80 percent of institutions reporting an increase in attacks.

“Cyber is an existential issue for financial institutions, which is why they invest heavily in cyber security,” says Thomas Kang, Head of Cyber, Tech and Media, North America at Allianz Global Corporate & Specialty (AGCS). “However, with such potentially high rewards, cybercriminals will also invest time and money into attacking them.”

He pointed to two malware campaigns – known as Carbanak and Cobalt – that targeted over 100 financial institutions in more than 40 countries over five years, stealing over $1 billion.

An ACGS report shows technical failures and human error are the most frequent generators of cyber claims, but the financial impact of these is limited:

“Losses resulting from the external manipulation of computers, such as distributed denial of service attacks (DDoS) or phishing and malware/ ransomware campaigns, account for the significant majority of the value of claims analyzed across all industry sectors (not just involving financial services companies).”

According to the report, regulators have turned their attention to cyber resilience and business continuity.

“Following a number of major outages at banks and payment processing companies, regulators have begun drafting business continuity requirements in a bid to bolster resilience.”

Not just cyber

The COVID-19 pandemic has taught the world a lot of lessons, not the least of which is how vulnerable the global supply chain – from toilet paper to semiconductors – is to unexpected disruptions. Demand for chlorine increased during 2020 as more people used their pools while stuck at home under social distancing orders and homeowners also began building pools at a faster rate, adding to the additional demand. Such disruptions can ripple through the economy in different directions.

Business interruption claims and litigation have been a significant feature of the pandemic for property and casualty insurers.

When the container ship Ever Given got wedged in the Suez canal – one of the most important arteries in global trade – freight traffic was completely blocked for six days. Even as movement resumed, terminals experienced congestion and the severe drop in vessel arrival and container discharge in major terminals aggravated existing shortages of empty containers available for exports. The ship’s owners and the Egyptian government remain locked in negotiations over compensation for the disruption, and the ship is still impounded.

Spurred in part by this event, the Japanese shipping community is considering alternative freight routes to Europe, both reliant on Russia: the Trans-Siberian Railway and the Northern Sea Route. Neither option is devoid of risks.

In an increasingly interconnected world, there is no bright line distinguishing man-made from natural disasters. After all, the Ever Given grounding was caused, at least in part, by a sandstorm. April’s power and water disruptions that left dozens of Texans dead and could end up being the costliest disaster in state history were initiated by a severe winter storm.

A resilience mindset focused on pre-emptive mitigation and rapid recovery is called for in both cases. There is no “either/or.”

White House, FEMA Resilience Officials
Speak at Triple-I Event

Caitlin Durkovich, special assistant to President Biden and White House National Security Council senior director of resilience and response, discussed the administration’s climate and resilience priorities at Triple-I’s National Town Hall (highlights video below. Click here to view full event).

She and Paul Huang, acting associate administrator of resilience for the Federal Emergency Management Administration (FEMA), met virtually with Triple-I CEO Sean Kevelighan and Michel Léonard, Triple-I vice president and senior economist.

“Resilience is a very important theme of this administration and of the priorities we have,” Durkovich said, elaborating that this includes preparation for and response to both natural and man-made events. The objective is to learn from every incident “so we don’t just bounce back but bounce forward.”

Referring to the administration’s infrastructure and clean-energy goals, she said, “We’re anticipating what the  world is going to look like 20 to 30 years from now, given the life span of our built infrastructure.”

Durkovich noted that there are several longstanding hazard-mitigation and hazard-response programs spread across multiple agencies.

“I think we have the opportunity to bring at least the federal community together to look at some of those programs and think about how we can modernize them, just like we’re modernizing infrastructure,” she said.

This will help communities “build back better” after an event.

But it’s going to take more than federal government to bring this about. Communities will have to be very involved, she said, adding, “It’s not just state and local planners, but it’s infrastructure owners and operators, it’s the finance side of the house, who are needed to work through some of these hard challenges before, so after an emergency, when money becomes available, you’re ready to make some significant changes.”

And as we invest in electrified transportation infrastructure, she said, “we have to make sure that infrastructure is resilient to power outages, to storms, and when we’re in the middle of a mass evacuation it can accommodate hundreds of thousands of people.”

Despite having to think about everything that could go wrong (what she described as “healthy paranoia”), Durkovich was upbeat: “It’s amazing to be having these conversations about designing resilience in at the beginning, instead of bolting it on at the end.”

FEMA’s Paul Huang echoed Durkovich’s enthusiasm for a “whole of government” and “whole of community” approach to resilience.

“We’re going to have to rethink how we do things,” he said.  “We have programs that have always been around. They’re good programs, but it’s not enough.  We have to think bigger and more creatively.”

Huang talked about a new FEMA program, Building Resilient Infrastructure and Communities (BRIC), that support states, local communities, tribes and territories in developing hazard-mitigation projects, reducing the risks they face from natural disasters.  “We’re hoping to see new ideas from industry, working with local and state government, to say, ‘This is something we can try together in partnership to get a bigger bang for our buck.’ “

Flood: Beyond Risk Transfer

Half a billion people worldwide are affected by floods annually, and about 90 percent of all U.S. natural disasters involve flooding. The human and economic tolls are massive, and until recently insuring these risks and helping communities recover fell almost entirely on government programs. 

Improved data, analysis, and modeling have helped drive private-sector interest in flood-risk transfer and mitigation. But despite growing private involvement, many experts consider the current system unsustainable. A resilience mindset is required, and that demands more than insurance products.

A new Triple-I paper analyzes the current state of flood risk and resilience and discusses how governments, corporations, academia, and others are rising to the challenges and seizing the opportunities.

“New products alone will not close the protection gap,” says Triple-I CEO Sean Kevelighan. “Risk transfer is just one tool in the resilience toolkit. Our understanding of loss trends and expertise in assessing and quantifying risk must be joined at the hip to technology, public policy and finance, and science. We need to partner with communities and businesses at every level to promote a broad resilience mindset focused on pre-emptive mitigation and rapid recovery.”

The Triple-I paper describes how this is happening. Tapping its own resources and the expertise of its insurance and risk-management network, Triple-I is pleased to bring you this analysis of the current state of flood risk and resilience.