Insurance is necessary for individuals, companies and communities to recover quickly from natural disasters – but dangers have developed to a point where risk transfer, although necessary, is not enough to ensure resilience.
Triple-I CEO Sean Kevelighan said for a while that better-insured societies are recovering faster, but "the long-term resilience of both societies affected by natural disasters and the industry itself is due to preparedness and improved risk reduction." He was one of three panelists who participated in the webinar.
"Something & # 39 ;s Got to Give"
Insured US natural disaster losses amounted to $ 67 billion by 2020 after a hurricane season in the Atlantic that included 30 named storms. record-breaking fires in California, Colorado and the Northwest Pacific, and a severe derecho in Iowa. This year's hurricane season looks set to get more serious; The Oregon Bootleg wildfire ̵
As Kevelighan put it in his panel remarks, pointing to a 700 percent increase in insurance loss costs since the 1980s, “Something has to come. "
" As the country's financial first responders, "he said," insurers are not only responsible for providing assistance to communities affected by natural disasters, but also planning for potential disasters. "
One of the ways insurers do this," he said, "is to build up the industry's cumulative policyholders 'surplus – the amount of money left after insurers' collective debt is deducted from their assets. $ 914.3 billion.
Mitigate and educate
The role of the insurance industry has grown beyond just taking risks to educate the public, regulators and corporate decision makers about the changing nature of risk focus on prevention and rapid recovery Triple-I and a host of other organizations in the insurance industry have played a key role in promoting public-private partnerships and using advanced data and analysis to understand and address dangers in advance.
To example gives Triple-I online Resilience Accelerator t access to data and risk maps that enable the public to assess and prepare for specific risks to their own communities.
This webinar, co-presented by the Institutes Griffith Foundation and the Insurance Regulator Education Foundation, included panelist Hanna Grant, Head of the Secretariat, accessing the Insurance Initiative; and Dr. Abhishek Varma, Associate Professor, Finance, Insurance and Law, Illinois State University. It was moderated by James Jones, CEO, Katie School of Insurance and Financial Services, Illinois State University.