California is the first state to work directly with the United Nations on a natural infrastructure insurance program that could help protect communities from wildfires and other disasters.
The California Department of Insurance is working on a year long initiative with the United Nation’s Environment Program to develop insurance practices that manage and reduce risks, specifically related to wetlands and forests.
“We have a historic opportunity to utilize insurance markets to protect Californians from the threat of climate change, including rising sea levels, extreme heat and wildfires,” says Insurance Commissioner for California Ricardo Lara. “Working with the United Nations, we can keep California at the forefront of reducing risks while promoting sustainable investments.”
In 2018, California experienced the state’s deadliest wildfire, which cost $12 billion in insurable losses and killed 85 people. According to experts, the increased severity of wildfires is likely due to climate change. Insurance services can offer compensation for risk reduction strategies, such as effective forest management or protecting utility infrastructure from possible disasters.
“A sustainable insurance road map will enable California to harness risk reduction measures, insurance solutions and investments by the insurance industry in order to build safer, disaster-resilient communities, and accelerate the transition to a low-carbon, sustainable economy,” said the U.N. lead, Butch Bacani.
Other countries have initiated similar natural infrastructure insurance programs, including protections for coral reefs and mangroves, which reduce coastal flooding and erosion.
Via LA Times
Iamge via Flickr