As one of the world’s most frequent and devastating perils, flood is indiscriminate in the damage it does to communities. Risk levels related to climate change, land use, and population concentrations, among others, are changing rapidly. And as floods increase in quantity and severity, these risks are compounded. Thus, it’s essential to plan for the future of floods.
Businesses, individuals, and society at large are all at risk of loss when floods occur. The time and effort needed to recover after an event depend largely on the resilience of those who experience and respond to flooding events. This global threat requires resilience to minimize damage during a flood catastrophe and to overcome the destruction afterwards. For these reasons, solving flood risk urgently requires increased collaboration by the public and private sectors.
Between 2007 and 2021, only 17% of global flood losses were insured, according to Marsh McLennan analysis.
Working together, the public and private sectors can speed recovery following flood events and increase communities’ resilience to future risks. This is especially needed in communities where insurance take up rates are low due to availability, affordability, or complacency. It’s a balancing act between the two sectors to ensure entrepreneurship produces long-term profitability that alleviates the strain on taxpayers footing the bill for recovery and resiliency measures.
Download our 2023 State of Flood Report below for actions to help achieve flood resilience.