Lessons Learned from Recent Hurricane Seasons: Preparing Organizations for What Could Occur in the Future
Property damage losses for the 2019 hurricane season totaled approximately $11.6 billion. This was less than the two previous years ($265 billion in 2017 and $50 billion in 2018), but the trend toward natural disasters of increasing severity seems clear.(1)
HURRICANE MODELING – METHODS FOR ASSESSING THE IMPACT OF FUTURE HURRICANES
The past three hurricane seasons underscored the broader impact of property and casualty exposures – their interdependent, wide-ranging risks to businesses, ecosystems, and people. The seasonal storms also called attention to the need for elevated business, community, and governmental response efforts, as well as comprehensive business disaster planning.
Stay Ahead of the Storm with Chubb
Corporate risk managers, building engineers, maintenance staff, and safety professionals should examine and perhaps rethink their current disaster planning and emergency response procedures. In that regard, a range of catastrophic property and casualty exposures should be considered:
- Common perils such as wind and flood can cause a host of issues from a property and casualty perspective, including fires and pollution-related events.
- Damage to buildings and equipment, and associated business interruption exposures, must be considered as potential property damage exposures. Contingent business interruption risks—the possibility that a key supplier, for instance, may be unable to meet delivery timeframes—must also be considered.(2)
Companies should craft comprehensive disaster and emergency response plans that prioritize required actions. Plans should address crucial needs, such as employee evacuation, properly shutting down plant equipment and machinery, backup computer systems, post-disaster mobile communications, supply chain issues, and transportation logistics.
Given the likelihood of the increased severity of hurricanes as our new normal, the need to partner closely with a global insurance company providing a broad spectrum of tailored coverages and services is critical. During such deliberations, companies should assess the carrier’s breadth of underwriting expertise, product and service offerings, claims handling expertise, catastrophe modeling capabilities, and global customer base.
To learn more about what to do before, during, and after a hurricane, click here to visit our Catastrophe Resource Center for Large Commercial Businesses.
To obtain additional insights into hurricane seasons of the recent past, as well as future risk management considerations, download our whitepaper.
The information contained in this document is intended for general informational purposes only and is not intended to provide legal or other expert advice. You should consult knowledgeable legal counsel or other knowledgeable experts as to any legal or technical questions you may have. Neither Chubb nor its employees or agents shall be liable for the use of any information or statements made or contained in any information provided herein.
Chubb is the marketing name used to refer to subsidiaries of Chubb Limited providing insurance and related services. For a list of these subsidiaries, please visit our website at www.chubb.com. Insurance provided by ACE American Insurance Company and its U.S. based Chubb underwriting company affiliates. All products may not be available in all states. This communication contains product summaries only. Coverage is subject to the language of the policies as actually issued. Surplus lines insurance sold only through licensed surplus lines producers. Chubb is the world’s largest publicly traded property and casualty insurance group. With operations in 54 countries, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to an adverse group of clients. Chubb Limited, the parent company of Chubb, is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb, 436 Walnut Street, Philadelphia, PA 19106. Copyright ©2018
This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Chubb. The editorial staff of Risk & Insurance had no role in its preparation.