The Weekly: From heat to hail - why disaster costs are skyrocketing
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Part II of our Wildfires Briefing explores four categories of opportunity for the private sector: 1) Implementing modern building materials and codes; 2) Technologies for better fire management; 3) New insurance models; and 4) Private financing for forest management.
Climate change and federal policies are making wildfires more frequent and intense. Migration patterns are increasing the exposure of assets to wildfire threats. And assets that are more vulnerable to wildfires translate into higher costs.
5 Early Insights from Hurricane Helene. Climate change exacerbated the impacts of Helene. Hurricanes are no longer just a coastal threat. And utilities face growing recovery costs alongside pressure to build more resilient grid systems.
By rebuilding the same way we’ve done in the past, we’re ensuring the trend will continue: a costly and frequent cycle of destruction and reconstruction that can threaten existing assets and multiply financial losses across every sector.
Many firms can play in the adaptation space both in terms of investments and solutions. Climate Disasters are catalyzing the deterioration of our U.S Bridges. And policy-makers are moving to hold largest emitters financially accountable in effort to raise capital for adaptation efforts.
Between 2000-2009, the U.S. averaged almost seven disasters per year that cost a billion dollars or more (per disaster)