Bermuda insurers, reinsurers group commends U.S. climate action plan

The Association of Bermuda Insurers and Reinsurers (ABIR) has commended the U.S. government and president Barack Obama on the release of a Climate Action Plan that highlights hazard mitigation.

In an open letter to the president, Bradley Kading, ABIR’s president and executive director, also offered the continued cooperation of the organization with climate change mitigation-related efforts.

The action plan, announced last week, includes strategies related to the impact of climate change, particularly in the wake of last year’s “Superstorm” Sandy.

“New York City is fortifying its 520 miles of coastline as an insurance policy against more frequent and costly storms,” Obama noted in his speech announcing the climate plan. 

“And what we’ve learned from Hurricane Sandy and other disasters is that we’ve got to build smarter, more resilient infrastructure that can protect our homes and businesses, and withstand more powerful storms. That means stronger seawalls, natural barriers, hardened power grids, hardened water systems, hardened fuel supplies.”

According to the White House, among other steps, the plan:

• “Directs agencies to support local climate-resilient investment by removing barriers or counterproductive policies and modernizing programs; and establishes a short-term task force of state, local, and tribal officials to advise on key actions the Federal government can take to help strengthen communities on the ground;

• Pilots innovative strategies in the Hurricane Sandy-affected region to strengthen communities against future extreme weather and other climate impacts; and building on a new, consistent flood risk reduction standard established for the Sandy-affected region, agencies will update flood-risk reduction standards for all federally funded projects;

• Launches an effort to create sustainable and resilient hospitals in the face of climate change through a public-private partnership with the healthcare industry;

• Maintains agricultural productivity by delivering tailored, science-based knowledge to farmers, ranchers, and landowners; and helps communities prepare for drought and wildfire by launching a National Drought Resilience Partnership and by expanding and prioritizing forest- and rangeland- restoration efforts to make areas less vulnerable to catastrophic fire; and

• Provides climate preparedness tools and information needed by state, local, and private-sector leaders through a centralized “toolkit” and a new Climate Data Initiative.”

“We believe the government’s heightened focus on hazard mitigation, building resilience, land use planning and building safer/stronger communities enhances the opportunities for private capital to insure and reinsure catastrophe exposed risk thus reducing further exposure to taxpayers in subsidizing public insurance programs,” Kading wrote in the ABIR letter. “Importantly it would also protect people and property from damage and injury with stronger and safer communities.”