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Zurich calls for mitigation focus in disaster strategy

Disaster management plans must focus more on preventive measures, as the risk from extreme weather rises, Zurich says.

Every dollar spent on resilience saves $5 on future losses, according to the insurer.

“That means it’s five times more expensive to be unprepared,” Group Chief Risk Officer Alison Martin said.

“Building resilience is money well spent and, more importantly, it saves lives.”

A Zurich study found disaster risk management is playing catch-up as natural hazard exposure grows, while infrastructure protections already in place can lead to complacency.

Mitigation funding is usually directed at physical structures, rather than more cost-effective risk management such as environmental planning. Few incentives exist to encourage “building back better” – a focus on resilience in the rebuilding process.

“The phrase ‘building back better’ has become a staple of the disaster risk management community,” Zurich said. “Common sense dictates that rebuilding to the same level of risk after a disaster would be futile and a wasted opportunity to strengthen resilience.”