By: Tim Hill
Last week, Ceres – a Boston-based nonprofit advocating for mobilizing business leadership for a sustainable world – released the report, “Stormy Future for U.S. Property/Casualty Insurers: The Growing Costs and Risks Of Extreme Weather Events.”
According to the report, U.S. insurances companies have a bumpy road ahead because of the frequency and severity of natural disasters. In the year 2011, extreme disasters cost U.S. insurers $32 billion USD in losses. It is estimated that globally around $380 billion USD in economic losses stemmed from catastrophes in 2011. These amounts were nearly two-thirds higher than in 2005 – the previous record year.
Whether flood, drought or hurricane, building resilience is urgent. Natural disasters are unavoidable; to create an environment that protects lives and livelihoods, insurers, private sectors companies and others need to invest in adaptation to help the world’s most vulnerable prepare. Insurance companies are already stretched after the natural disasters of recent years and it may be difficult to alter the industry’s ability to make necessary future operational and strategic investments, according to the report.
Adaptation to a changing world is more important than ever. Cities, communities, towns and villages will require investment in the future to help to build resilience and adapt to a changing world.
To view the full 32-page report, click HERE.