Collaboration to Increase Flood Resilience

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Flood insurance was once a practically untouchable risk for insurers; however, with better access to data, analytical tools, and sophisticated modeling skills, it is now a growing revenue potential.

Additionally, these advances have created the groundwork for effective partnerships between businesses, governments, and nonprofit organizations to increase flood resilience for communities and businesses.

 

One example is the management of stormwater.

Sean Kevelighan, CEO of Triple-I, recently took part in a panel at the P3 Water Summit to talk about the difficulties associated with flooding and poor water quality, as well as how insurers, communities, rating services, and other organizations are incorporating flood and climate risks into their operations.

 

View from the center

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The moderator had previously identified three big global crises: biodiversity loss, climate change, and the COVID-19 pandemic. Kevelighan said, “I might add geopolitical risk and social upheaval, as well as disruption due to technology and innovation. Insurance is in the heart of all of this.

Triple-I is here to contribute to all those conversations.

 

In terms of the wider disruption continuum, he said, “climate risk is absolutely at the center of all the debates we’re having right now.”

 

He pointed out that the market has been searching for decades for ways to promote approaches that would help customers become more resilient as well as ways to help customers recover from natural disasters.

 

Kevelighan pointed out that flooding is a particularly urgent risk since “every year you’ve got around a half billion people that are affected by floods.

Flooding is a factor in almost 90% of all natural disasters that affect the United States.

This is a crucial stage in the catastrophe cycle, but it’s also seriously underfunded.

 

In the past, the federal and state governments have been responsible for managing flood insurance and recovery aid.

Better data and other capabilities have made writing the policy a more enticing choice for insurers, but Kevelighan pointed out that other solutions, such public-private partnerships, are also required to close the “protection gap.”

 

Consolidating everything

 

The Resilience Innovation Hub was co-founded by Richard Seline, managing director of Resilient H2O Partners, and he spoke about the initiatives his companies have taken to “introduce emerging technologies, existing equipment, put it together with public and private interests” to support resilience-enhancing actions and behaviors.

 

The goal of the Innovation Hub, according to Seline, is to network the greatest ideas, expertise, and capital in a more effective and efficient manner.

We have numerous conversations going on with engineering firms, architecture firms, and other private equity firms.

The Nature Conservancy has a dedicated venture fund, which I was unaware of until a year ago!

We are putting together those kinds of people.

Kevelighan and Seline both emphasized the significance of data in enabling these partnerships, saying, “Without the data to perform the cost-benefit analysis and the return on investment, it’s all theoretical.”

 

He asserted that it is now possible to combine hydrological data with financial and economic risk models to better guide investment planning and decision-making because of collaborations between organizations like Triple-I and Resilient H2O.

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