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Extreme weather planning hinges on resilience, not forecasts
Swiss Re data shows Hurricane Ian drove $50.0 billion to $65.0 billion in insured losses in September 2022, and much of the damage spread through supply chains and distribution far from Florida.
Extreme weather losses can ripple well beyond damaged buildings, reframing the risk for insurers and businesses, according to Insurance Business. Swiss Re Institute estimated Hurricane Ian generated between $50.0 billion and $65.0 billion in insured losses when it hit Florida in September 2022, the second-costliest insured event on record after Katrina.
Insurance Business reports that a large share of that impact traveled through supply chains and distribution networks located hundreds of miles from the storm. For risk managers and business owners, the story is therefore not only about property coverage, but also about workforce disruption, operational continuity, and coverage gaps.
Trucordia executive Jeff Lang argues that many companies wait too long, relying on forecasts when a storm approaches. He said the biggest mistake is treating weather as a one-time event rather than an ongoing business risk, because by the time a storm appears on the radar, the key decisions are already too late.
Lang points to Winter Storm Uri in February 2021 as an example, saying the most significant business damage was linked to power failures, stopped transportation, suppliers that could not deliver, and employees unable to work. Insurance Business notes that he frames the needed shift as moving from physical protection toward operational resilience that affects workforce, suppliers, technology, and utilities.