SUSTAINABILITYW
must shift towards a more proactive approach , incentivising and supporting homeowners to take preventative action against climate-related risks .
“ There ’ s hope ,” says Rory . “ Flood Re and others are addressing the ‘ build back better ’ issue with insurers .” This approach encourages rebuilding with improved materials and designs to better withstand future climate impacts . “ A resilience strategy governments should be more actively supporting . If you experience flood damage , properly rebuilding the property so it doesn ’ t happen again makes far more sense than building back what was there before with all its incumbent risk .”
According to a report by Deloitte , the home insurance model faces unprecedented challenges . In 2022 , 75 % of the property and casualty sector ’ s insured losses , totalling US $ 74 bn , were linked to US homeowners . This trend is worsening , with estimated annual loss growth of 5-7 %, potentially reaching US $ 118bn by 2030 due to severe weather events . Addressing this , Deloitte suggests investing US $ 3.35bn in residential resiliency could save insurers up to US $ 37bn by 2030 . Only 35 % of US homes meet current building codes , highlighting the need for enhanced resilience measures to mitigate rising insurance costs and losses .
“ A resilience strategy governments should be more actively supporting . If you experience flood damage , properly rebuilding the property so it doesn ’ t happen again makes far more sense than building back what was there before with all its incumbent risk ,” says Rory .
156 September 2024