A recently released report determined the price tag for disaster mitigation in America in 2017 exceeded $300 billion and highlighted the importance of mitigation investment.
The National Institute of Building Sciences (NIBS) effort referenced 2017 marked one of the costliest years on record due to weather-related disasters while noting natural disasters continue to pose a serious threat across the country.
“Mitigation is proving to be a critical investment for businesses, consumers, and the government to navigate the increasing number of severe weather events,” Robert Gordon, Property Casualty Insurers Association of America (PCI) senior vice president of policy, research and international, said. “The NIBS report provides numerous strategies and solutions for protecting our homes and neighborhoods from disasters, such as elevating homes at risk of flooding, improving stormwater management systems, replacing old roofs and strengthening buildings against earthquakes.”
Officials said the report ultimately found every dollar invested in disaster mitigation can save America $6 in future costs, which is far more than previously estimated.
“These mitigation measures will save lives as well as money, in addition to creating long-term jobs as part of mitigation investments,” Gordon said.
PCI officials said the organization is comprised of nearly 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write $220 billion in annual premium or 37 percent of the nation’s property casualty insurance.