Institute for Catastrophic Loss Reduction lauds report on disaster risk mitigation

The Toronto-based Institute for Catastrophic Loss Reduction (ICLR) is praising a report that finds measurable investment in risk reduction can significantly lessen the consequences resulting from floods, earthquakes, wildfires and other natural disasters.

Released at this week’s Building Innovation 2018 Conference in Washington D.C., the U.S.-based National Institute of Building Sciences’ Multihazard Mitigation Council interim report states that every dollar the federal government puts into disaster mitigation can help prevent an average of $4 in future losses.

Related: Warming puts millions more at risk from river floods

In a news release, ICLR executive director Paul Kovacs said the study “puts a finer point on the metrics and continues to offer overwhelming evidence that building resilience is key to avoiding death, injuries, property damage and disruption.”

He also cited an earlier edition report from 2005, which showed that over time, these preventative measures offer a significant return on investment.

Breaking down the report, benefit-cost ratios when building beyond code were found to come in at 5:1 for river floods, 7:1 for hurricane surges, 5:1 for wind and 4:1 for earthquakes and wildfires.

Concerning investments in mitigation, the benefit-cost ratio increased to 7:1 for river floods, remained at 5:1 for wind and came in slightly lower—at 3:1—for earthquakes and wildfires.

The report is intended to help professionals in a number of fields, from insurers to engineers, architects, planners, code officials and emergency managers.

Canadian Insurance Top Broker is on LinkedIn (linkedin.com/company/citopbroker) and Twitter (twitter.com/CITopBroker). Follow us for easy access to the top P&C news you need to know.

This story was originally published by Canadian Insurance Top Broker.