In a contributed article in Business Insurance, we shared a nuanced perspective on risk and how it can alter decision-making on where to live and operate a business. The aftermath of 2022's Hurricane Ian is used as an example to provide context on how catastrophic events can impact business decision-making and how the insurance markets have responded to extreme weather events.
The piece argues that our knee-jerk reaction when hurricanes or other weather events unfold is to immediately ask what can be done about climate change, but that trying to "address climate change as a whole is an immeasurable task.” Instead, what is needed by property owners and corporations is a thoughtful approach that considers the full scope of potential exposures, past loss histories, and worst-case scenarios over the long term.
The piece goes on to outline the weaknesses of year-to-year planning and proposes that businesses begin collecting, aggregating, and analyzing available data as a way to distill a more informed view of the risks their business or property is likely to face.
For further insight into these challenges, you can read the full article here.