Public-private risk reduction initiatives could halve damage caused by natural disaster: ICLR

Disaster damage in Canada could be reduced to half the current level in 25 years if the public and private sectors work together to develop a comprehensive program of disaster risk reduction, said Paul Kovacs, the Institute for Catastrophic Loss Reduction (ICLR)’s executive director.
Kovacs offered a keynote address at the 2nd Annual National Roundtable on Disaster Risk Reduction in Ottawa on Oct. 18.
During his speech, Kovacs said disaster response and preparedness programs in Canada have evolved over the years, but more needs to be done to reduce the risk of damage caused by natural hazards.
He suggested that when governments in Canada are ready to move beyond emergency response and preparedness, and invest in disaster risk reduction, they will find many willing partners – including members of the insurance community.
“The insurance industry was a critical partner for governments across Canada in the successful efforts to prevent catastrophic urban fires, and should be an equally helpful partner to address current major risks like urban flooding, earthquakes, wildfire and severe wind,” a copy of his speech said.
“Moreover, insurance is the primary mechanism used to manage and finance the recovery of homeowners and businesses from most hazards in Canada.
“However, most Canadians are not well informed about the specific protection provided by insurance for these unusual events, likely including officials that may be responsible for guiding the rebuilding and recovery following a disaster. It is important to partner with the insurance industry to better understand and manage the role of insurance and public relief in supporting the rebuilding and recovery after a disaster.”
Kovacs pointed to similar public-private risk-reduction initiatives taken in different fields that showed great gains. They include:
•The likelihood that drivers are involved in a vehicle collision is now less than one third of the rate per kilometre driven experienced 30 years ago.
•The likelihood of fire damage to homes is less than one-third the peak rate recorded 30 years ago.
•The property crime rate in Canada is 40% of the peak rate recorded 20 years ago.