April 27, 2023 — The WCRI featured a panel that examined a side of climate-change-related risk that we don't hear about all that often — what are the unique risks of cleaning up after Mother Nature has once again reminded us of who is in charge? Jeff Rush of the California Joint Powers Insurance Association and Jill Leonard, VP of Claims Operations, Louisiana Workers' Compensation Corporation* spoke about the issues that arise when the storm is over or the giant brush fire is extinguished, and we have to get back to normal functioning.
A post-hurricane example caught our attention. What happens to your risk planning when you have a massive clean-up that has to be done fast and (a) there are few qualified people available, (b) the water is laced with who knows what chemicals and critters, and (c) the weather is now clear and HOT**? Oh, lest we forget, due to the range of damage in the community, medical treatment is harder to find if someone is injured on the job.
As climate change drives more weather-related catastrophes, the stakes for contingency planning keep going up across the risk spectrum. The chart below (courtesy of Climate.gov) offers an idea of how the weather has been hammering the US a little more every year. Note that in 2021 80% of all damage events were billion-dollar-plus events, an all-time high. The left-hand side of the chart, 1980, is now more than a generation ago. Has your understanding of the scope and vital importance of contingent risk management for post-incident recovery developed and matured accordingly?
*Between them, the states of California (wildfires) and Louisiana (hurricanes) have a PhD level depth of experience in disaster recovery.
**Heat stroke/exhaustion has been a serious factor after both hurricanes and wildfires. So much so that some jurisdictions either have or are planning to promulgate new heat risk regs.
Author
Dr. Gary Anderberg
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