sed.
Overall, the report “really helps make the case” for natural infrastructure spending in disaster recovery initiatives, he said.
“In disaster risk reduction, as much as we would all like to see money spent ahead the storms, the real game is post-storm spending,” Mr. Beck said. “Even though pre-storm spending is more cost effective — there’s plenty of analyses to show that — there’s frankly nothing like a bad event to motivate big spending.”
The next step is to review and identify promising opportunities and geographies for investments in natural infrastructure, said London-based Dickie Whitaker, CEO of Oasis Loss Modelling Framework and chair of the Lloyd’s Tercentenary charity steering group that selected the project. Having tangible outcomes is also important in building toward a future in which specific methodologies can be developed to guide decision-making, he said.
“I think we need to use this type of research to calculate the impact on building structures, on insurance portfolios and society at large,” Mr. Whitaker said.
The Environmental Defense Fund is actively engaged in conversations with reinsurers such as Munich Reinsurance Co. and with RMS for a pilot project to evaluate a segment of the coastline and the risks and benefits of wetlands restoration, possibly in Louisiana, Ms. Cunniff said.
“From an insurance perspective, we’ve seen the benefit of flood defenses and the positive impact that has, especially around New Orleans and up and down the Mississippi River,” said Carl Hedde, head of risk accumulation for Munich Reinsurance America Inc. in Princeton, New Jersey.
“Down the road, I think these will be treated similar to the flood defenses we have, but I think from an insurance perspective it’s a little bit early because a lot of research is still being done. There are some natural defenses in place, and I think it’s going to take some time to quantify the protections that are afforded.”