Insurance Companies Need to Change Their Strategies on Wildfire of Insured Assets _ A Research Report

February 16, 2021.

(Washington, DC, Economic & Insurance News by Insurance Market 360) - Centre for Insurance Policy Research (CIPR) in association with Risk Management Solutions (RMS) and Institute for building and home safety (IBHS) investigated and submitted a technical report on the economic advantages of wildfire resilience strategies in nine communities of California, Colorado and Oregon.

Research was done considering North America wildfire model taking into account various factors like: geographical conditions, distance of plant life, slope and ceiling, suppressions, roof events and acceptability conditions.

The paper could trace out certain interesting observations like, traditional information and data will not suffice to get clarity on risk minimizing concept. Rather, the emphasis should be on practical approaches and disaster management strategies to address the issue in a realistic and accessibility manner. It is also felt that; wildfire can be effectively managed by taking necessary mitigations and interventions. Lion share of about 78% reduction can happen if certain modifications can be done in the construction design and vegetation; well built constructions can withhold risk by 5 times than to that of flammable prototypes and sensitive to various calamities which results in major loss and damage to the property and people.

IBHS and National Institute of Standards and Technology, NIST with their vast experience and specialization in the wildfire suggest that, Insurance companies need to focus on reduction of risk factors rather than termination strategies.

Source: National Association of Insurance Commissioners, NAIC

Reference:https://content.naic.org/article/news_release_new_white_paper_cipr_reveals_key_actions_reduce_wildfire_risk.htm

 

Comments are closed.