Insurance Industry Climate Change Roundtable GRC Climate Finance - - PowerPoint PPT Presentation
Insurance Industry Climate Change Roundtable GRC Climate Finance Series September 18, 2015 R OUNDTABLE P ARTNERS CEO network supporting the implementation of the City of Boston Climate Initiative of the UN Office Action Plan for Disaster
September 18, 2015
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CEO network supporting the implementation of the City of Boston Climate Action Plan Initiative of the UN Office for Disaster Risk Reduction Core partner with AR!SE
www.theriseinitiative.org
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We have regulators and regulated in the room. We are operating under Chatham House Rules to provide a “safe harbor” for sharing insights We are looking to create a partnership with the local insurance and finance sector to align insurance incentives and loan underwriting with best practices in Building Resilience Measures Our intent is identify specific actions to take to increase climate resilience of coastal urban properties We are focused on limited set of perils: storm surge, precipitation-based flooding, sea level rise, and extreme heat and wind events. We have a number
the room, please remember and respect antitrust statement
Please be reminded that you should never discuss or agree with a competitor concerning any of the following subjects:
legal right to buy and sell in a market untainted by anticompetitive agreements, including anticompetitive informal, unwritten understandings;
credit terms and credit availability, discounts, rebates, warranty terms, return policies, and so forth (subjects are viewed by the antitrust authorities as directly or indirectly affecting prices);
business;
certain types of products;
from a particular supplier, or to restrict existing or future cooperation with another competitor; and
customer
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Colored Area = Today’s high tide, plus 5.0 feet of SLR and storm surge
Source: Preparing for the Rising Tide, Boston Harbor Association, 2013
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Colored Area = Today’s high tide, plus 7.5 feet of SLR and storm surge
Source: Preparing for the Rising Tide, Boston Harbor Association, 2013
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February 2013 Mayor Menino asks the GRC to form a Climate Preparedness Working Group. November 2013 GRC Working Group delivers its recommendations to the November GRC meeting, including insurance recommendations. March 2015 US launch of AR!SE held in Boston, with a breakout session on Insurance and Finance September 2015 Insurance Climate Roundtable
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“The goal of these recommendations is to build a partnership between local insurers, financial institutions and property owners to align insurance policies with desired property resilience actions and create access to capital to finance those actions. 1.Define resilience standards for existing buildings. 2.Work with insurance brokers and property owner trade associations to educate property owners regarding climate risks and resilience 3.Improve awareness and understanding of resilience insurance and finance products and services. 4.Work with the State Insurance Commissioner to encourage climate-smart insurance policies.”
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Strategies Investment metrics Benchmarking & Standards Education & Training Legal & Regulatory Cities Insurance
Themes
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Stakeholders In “Keeping Boston Insurable” Property Owners City Government Insurers & Reinsurers Taxpayers Financiers Regulators Tenants
City government
resiliency actions at macro level
long-term ability of city to recover from disasters
to orchestrate actions at regional and/or community level
with models of insurance to protect assets (Re)insurers
policies that do not align with long-term risks
perils, not broad “climate risk” coverage
perils (heat events, flood/sea level rise)
regulation or reinsurance considerations Regulators
markets “highly regulated, short-term, backward looking and slow to innovate”
written by separate state insurance commissioners
incentives to coordinate on regional and/or national basis Tenants
perspective; can quickly move
properties”
no responsibility for resiliency
invest in rented property
incentive to pay premium rents for risk-resilient properties Financiers
in resiliency improvements as they do not usually hold investments for entire asset life
leverage potential tax benefits
manage properties; limited authority to promote improvements Citizens and taxpayers
risk” stakeholders (taxpayers may act as “funders
understand Gordian knot of
responsibilities
media and stakeholders who might have incomplete data Property
actions not sufficient to “move the needle” on an individual basis
efforts exist at portfolio and/or community level
exists for taking action, property
few incentives to improve properties
WHO ARE SOME OF THE KEY PLAYERS AND WHAT ARE THEIR MOTIVATIONS?
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“Good heavens, Stuart. We are going to need the net!”
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Time Topic Presenter 9:20 Resiliency Challenges in Massachusetts Daniel Judson, MA Commissioner
9:30 What Actions Is the Federal Government Taking? Samantha Medlock, White House CEQ 9:55 FEMA’s Role in Perils Facing Boston Dean Savramis, FEMA Region 1 10:15 Why Are Resilience Investments Important? Peter Civitenga, AIR 10:45 Break 11:00 Framing Insurance Markets Cynthia McHale, Ceres 11:10 What Products and Services Are in the Local Market? Nick Shufro, PwC 11:25 Innovation Example – Reinsurance Kirk Metcalf, Willis 11:35 Innovation Example – Resilience Standards Doug Pierce, Perkins + Will 11:50 Going Beyond Boston and the Commonwealth Nick Shufro, PwC Glenn Dolcemascolo, UNISDR Olivia Darby, Willis 12:00 Pre-Lunch Wrap Up and Discussion John Cleveland, GRC
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Time Topic Presenter 12:20 Lunch and Presentation: “Resiliency Plans and the Climate Action Plan” Austin Blackmon, Chief of Energy, Environment and Open Space, City of Boston 1:00 What Is the City of Boston Do to Advance Resiliency in the Property Sector? Carl Spector, City of Boston 1:30 How Can State Insurance Policies Advance Climate Resilience in the Property Sector? Cynthia McHale, Ceres George Bradner, Connecticut Katherine Greig, New York City Daniel Judson, Massachusetts Macky McCleary, Rhode Island 2:30 Break 2:45 Voice of the Customer –What Do We Need to Do to Improve Resilience? David Straus, ABC David Begelfer, NAIOP Greg Vasil, GBREB 3:15 Next Steps and Closing John Cleveland, GRC 3:30 Adjourn
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