WIN Magazine - Fall 2017 - 15

©ISTOCK.COM/KARL SPENCER

Clearly, there needs to be a model in
which aid and disaster relief works
with speed - thus the reason to protect
organizations like FEMA and its global
counterparts. However, reducing moral
hazard requires that the price of risk and
its consequences are borne by those who
create or take the risk in the first place.
In this case, climate change is being
produced and accelerated by advanced
markets. Now advanced markets are
beginning to feel the consequences.
Climate change resilience goes far
beyond how we get around over long
distances and whether we evolve from
the internal combustion engine, which
seems all but inevitable (albeit a little too
late) as countries, including France and
China, weigh diesel and petrol vehicle
bans. It also includes our financial readiness and the penetration of insurance
and other hedging mechanisms, such
as insurance-linked securities.
Lloyd's research shows that a 1 percent rise in insurance penetration translates into a 22 percent decrease in the
burden shouldered by taxpayers following a large loss. While some classes
of insurance are more ubiquitous than

gravity in advanced economies, underdeveloped or non-existent insurance
markets in developing countries greatly
hamper post-disaster recovery efforts.
Moreover, the lack of insurance penetration across all categories of coverage
provides no financial backstop as families that grapple with losing economic
breadwinners inevitably slide into hardship or poverty. Increasing insurance
penetration, from property programs to
life and health, can not only more accurately price climate risk, it can also help
shore up redevelopment and individual
household resilience.
Financing climate change and natural disasters through a broad-based
approach can help improve pre-crisis
readiness and post-crisis reconstruction.
No matter how innovative pure claimsbased solutions are, there is no climate
risk-management substitute to stopping the accident in the first place. To
do this, leveraging financial markets to
change behavior through incentives and
penalties can have a positive impact on
the worst-performing advanced-market
consumers. Globally, the disequilibrium
of impacts from climate change weigh

heavily against underdeveloped countries. Calibrating this imbalance through
public-private approaches will help stem
the tide of forced migration, terrorism
and other global threats in the era of
man-made risks.
The message of Harvey and Irma are
clear: We no longer have the luxury of
waiting to get ahead of climate change.
If these storms serve to move climate
change to the front of the legislative
agenda, there may have been a silver
lining to all the damage and misery
they have wrought. With this wake-up
call, perhaps the U.S. seat at the global
climate-change table will not remain
unoccupied and vital agencies like FEMA
will not rely on 11th-hour credit lines
from Congress to carry out their disaster
recovery work.
●
Dante A. Disparte is
Founder and CEO and
Daniel Wagner is Managing
Director of Risk Solutions,
of Risk Cooperative, based
in Washington, D.C. They
are the co-authors of "Global Risk Agility
and Decision Making."
F A L L 2017 | 15


http://www.ISTOCK.COM/KARL

Table of Contents for the Digital Edition of WIN Magazine - Fall 2017

Do Hurricanes Have a Silver Lining?
Underwriting Marijuana
The Cyber Insurance Conundrum
Writing Data Security Into Law
Gauging Risk, Reaping Reward
Simply Seamless
Moving to the Cloud: 3 Migration Strategy Models and the 6 R’s.
In the WIN-NER’s Circle
WIN Magazine - Fall 2017 - Intro
WIN Magazine - Fall 2017 - bellyband1
WIN Magazine - Fall 2017 - bellyband2
WIN Magazine - Fall 2017 - cover1
WIN Magazine - Fall 2017 - cover2
WIN Magazine - Fall 2017 - 3
WIN Magazine - Fall 2017 - 4
WIN Magazine - Fall 2017 - 5
WIN Magazine - Fall 2017 - 6
WIN Magazine - Fall 2017 - 7
WIN Magazine - Fall 2017 - 8
WIN Magazine - Fall 2017 - 9
WIN Magazine - Fall 2017 - 10
WIN Magazine - Fall 2017 - 11
WIN Magazine - Fall 2017 - Do Hurricanes Have a Silver Lining?
WIN Magazine - Fall 2017 - 13
WIN Magazine - Fall 2017 - 14
WIN Magazine - Fall 2017 - 15
WIN Magazine - Fall 2017 - 16
WIN Magazine - Fall 2017 - Underwriting Marijuana
WIN Magazine - Fall 2017 - 18
WIN Magazine - Fall 2017 - 19
WIN Magazine - Fall 2017 - 20
WIN Magazine - Fall 2017 - 21
WIN Magazine - Fall 2017 - 22
WIN Magazine - Fall 2017 - 23
WIN Magazine - Fall 2017 - The Cyber Insurance Conundrum
WIN Magazine - Fall 2017 - 25
WIN Magazine - Fall 2017 - Writing Data Security Into Law
WIN Magazine - Fall 2017 - 27
WIN Magazine - Fall 2017 - 28
WIN Magazine - Fall 2017 - 29
WIN Magazine - Fall 2017 - 30
WIN Magazine - Fall 2017 - Gauging Risk, Reaping Reward
WIN Magazine - Fall 2017 - 32
WIN Magazine - Fall 2017 - 33
WIN Magazine - Fall 2017 - 34
WIN Magazine - Fall 2017 - 35
WIN Magazine - Fall 2017 - Simply Seamless
WIN Magazine - Fall 2017 - 37
WIN Magazine - Fall 2017 - Moving to the Cloud: 3 Migration Strategy Models and the 6 R’s.
WIN Magazine - Fall 2017 - 39
WIN Magazine - Fall 2017 - In the WIN-NER’s Circle
WIN Magazine - Fall 2017 - 41
WIN Magazine - Fall 2017 - 42
WIN Magazine - Fall 2017 - cover3
WIN Magazine - Fall 2017 - cover4
WIN Magazine - Fall 2017 - outsert1
WIN Magazine - Fall 2017 - outsert2
WIN Magazine - Fall 2017 - outsert3
WIN Magazine - Fall 2017 - outsert4
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