The Weekly: Unaffordable Housing—A Hidden Driver of Wildfire Risk?
The housing affordability crisis and the wildfire crisis aren't distinct challenges. They're a self-reinforcing cycle that requires investing in resilience to break.
The Dixon Trail community in California could signal a way forward for stakeholders grappling with the heightened risk of building, owning, and insuring homes in the fire-prone West.
Francis Bouchard, Managing Director of Climate for Marsh McLennan, recently interviewed Roy Wright, CEO of the Insurance Institute for Business & Home Safety (IBHS), to discuss the future of insurance in the age of climate change and the importance of product innovation.
When disaster strikes, the question is not whether we will rebuild, but how. The problem is that it costs more to rebuild a home to disaster-resilient standards. We need new flexible and dedicated financing products that make it easier for homeowners to make critical resilience investments.
The majority of U.S. infrastructure is funded, built, and maintained by city councils, county boards, and state legislatures. But aging infrastructure, escalating climate risk, and other factors are converging to leave local communities less prepared to absorb their growing risk.
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The Greenline Housing Foundation is helping Altadena residents recover, rebuild, and remain in the neighborhood following January's devastating fire. This profile of Greenline’s work examines how rebuilding with resiliency can drive a recovery that preserves wealth and gets residents back home.
Historically, strong federal environmental regulations drove government action to manage water resources -- that’s changing as more communities experience flooding and see the benefits of nature-based solutions to mitigate those impacts.
Insurers play a key role in sending risk signals, sometimes in a form other than price. These risk experts need to lead by reframing the “insurance crisis” as the “insurability crisis,” and leveraging a time-tested safety standard approach to align a complex ecosystem of competing interests.