As climate change and the associated increase in natural catastrophe events alters the contemporary risk landscape, there is now an opportunity for governments to partner with the (re)insurance market and put its expertise to work.
After a flood event, companies need to take into account both the short-term imperatives to get up and running quickly and the longer-term need to future-proof against a repeat event, according to Bev Adams, Head of Catastrophe Resilience and Visual Intelligence at Marsh Risk Consulting. Marsh is an affiliate of Guy Carpenter.
Investing in protection against repeat events over the longer term is just as important to consider as addressing the short-term imperatives for business operation.
That was the driving thought behind the February 2020 launch by the Property Flood Resilience (PFR) Roundtable of the UK Flood Resilience Code of Practice. Led by the UK Department for Environment, Food and Rural Affairs (DEFRA), it provides operational guidance to tackle flooding head-on.
The advice goes beyond insuring flood risk and outlines how organizations can best make physical changes to their properties to increase their resilience both before and after flooding occurs. The goal is to minimize their likelihood of making claims and to reduce the “return-to-normal” time frame from months, or sometimes years, to just days after an event. This better fits the reality that many people will have to live with water in the coming years. However, when keeping water out is too dangerous for the structure of a building, letting it in must be thought through.