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  • ABIR Comments on the President's Climate Change Plan

    Property/Catastrophe | Statements / Letters | 07.01.2013

    July 1, 2013

    The President
    The White House
    1600 Pennsylvania Avenue, NW
    Washington, DC 20500

    Subject: The President’s Climate Change Plan; ABIR Comments

    Dear Mr. President:

    On behalf of the Association of Bermuda Insurers and Reinsurers (ABIR) please accept these comments in support of key elements of your Climate Action Plan. We appreciate the leadership you have shown in calling attention to one of the great challenges of the 21st Century. ABIR’s 21 global insurers and reinsurers are leading underwriters of (re)insurance that provide protection to Americans from weather related events including drought, thunderstorms and tornadoes, flooding and hurricanes. ABIR’s members are the largest providers of hurricane reinsurance protection to US insurers and also include several leading providers of crop insurance and reinsurance.

    In 2009 our membership endorsed a Climate Change policy statement and our membership has backed scientific research on climate change through the Risk Prediction Initiative work of the Bermuda Institute for Ocean Sciences (BIOS) – a leading Bermuda-based ocean and climate science research facility. We would welcome the opportunity to work with your Administration in its outreach to insurance leaders in order to further the understanding of climate change risks and to better promote public policy decisions that will encourage the insurability of homes and businesses.

    Of particular relevance to ABIR members are your proposals to: build resilient communities, learn from the lessons of Hurricane Sandy, and encourage safer buildings and improve land use planning to better protect people and property. We’re also encouraged by the proposals to promote risk mitigation through improvements in the National Flood Insurance Program (NFIP) and other “public” insurance programs.

    If implemented we believe the government’s heightened focus on hazard mitigation, building resilience, land use planning and building safer/stronger communities enhances the opportunities for private capital to insure and reinsure catastrophe exposed risk thus reducing further exposure to taxpayers in subsidizing public insurance programs. Importantly it would also protect people and property from damage and injury with stronger and safer communities.

    We’ve attached our recent filing with the US Treasury’s Federal Insurance Office which provides our responses to the consultation focused on insuring natural disaster exposed risks in the United States.

    Sincerely,

    Bradley Kading
    President and Executive Director

     

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