American Property Casualty Insurance Association
  • Staff Contact: Eileen Gilligan     
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Contact:

Eileen Gilligan

Tiffany O’Shea

Phone:

202-639-0497

(512) 636-7811

Email:

Eileen.Gilligan@pciaa.net

toshea@ibhs.org        

 

 

FOR RELEASE ON RECEIPT

September 23, 2014

Trade Groups Issue Joint Statement on Insurance Industry’s Commitment to Risk Mitigation

 

WASHINGTON- In June 2014, the White House hosted the Roundtable Meeting on Climate Resilience and Insurance, convening White House senior staff, federal agency leaders, and insurance industry leaders to discuss how to mitigate increasing economic consequences of extreme weather and other climate-related risks. In addition, there was discussion about potential collaborative efforts to better identify, communicate, and reduce the costs of weather-related events.

 

The following statement arises out of that Roundtable Meeting and is a tangible demonstration of the property-casualty insurance industry’s commitment to risk mitigation and our nation’s resilience. The statement should be jointly attributed to the following organizations:

 

American Insurance Association

Insurance Institute for Business & Home Safety

National Association of Mutual Insurance Companies

Property Casualty Insurers Association of America

Reinsurance Association of America

 

JOINT STATEMENT:

Extreme weather events, such as hurricanes, tornadoes, other types of windstorms, drought, heavy precipitation, flooding, wildfires, and severe winter weather negatively impact communities, economies, natural resources, and public health across our Nation. Furthermore, several recent adverse weather phenomena have resulted in massive economic and human costs.

 

The property insurance industry:

·         is committed to helping people and communities in every region of the country prepare for extreme weather and other natural hazards;

·         shares concerns about reducing the economic impacts of recurring extreme weather;

·         has an acute interest in reducing physical, economic, and social costs associated with extreme weather;

·         understands the importance of broadly available insurance coverage to increase economic resilience; and,

·         actively works to enhance resilience and pre-event property loss mitigation, as well as to enable rapid and less costly recovery after disasters.

 

For these reasons, the property insurance industry and the Administration are engaging in a dialogue about effective ways to better identify, communicate, and reduce the physical and economic risks and costs of extreme weather, and to increase resilience to such events. Goals for this dialogue are:

 

Ø  Encouraging American states, communities, and tribes to adopt prudent, hazard-specific land use measures and strong codes and standards for both new and existing buildings to increase resilience to present and future risks.

 

Ø  Articulating common messages about levels of risk and vulnerability posed by extreme weather – including using market-based mechanisms to more directly match insurance coverage to relative risk.

 

Ø  Supporting and utilizing research and targeted incentives (such as tax credits, loans, or grants) to promote effective loss mitigation, in order to reduce current and future risk to people, property, natural features, ecosystems, and critical infrastructure.

 

Ø  Sharing science-based information to better inform public policy and decision-making at all levels of government and commerce, including analyses of the benefits and costs of property mitigation measures.

           

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $195 billion in annual premium, 39 percent of the nation’s property casualty insurance. Member companies write 46 percent of the U.S. automobile insurance market, 32 percent of the homeowners market, 37 percent of the commercial property and liability market, and 41 percent of the private workers compensation market.

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