Category Archives: Disaster Resilience

Auto Insurance, Catastrophes, Disaster Preparedness, Disaster Resilience, Emerging Risks, Flood Insurance, Homeowners Insurance, Hurricane, Industry Awards & Events, Insurers and the Economy, Legal Environment, Market Conditions, Regulation, Risk Management, Severe Convective Storm, Tornado, Wildfire, Wind

Insurance Affordability, Availability Demand Collaboration, Innovation

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By Lewis Nibbelin, Contributing Writer, Triple-I

Insurance industry executives and thought leaders gathered yesterday for Triple-I’s Joint Industry Forum (JIF) in Chicago to discuss the trends, economics, geopolitics, and policy influencing the market today, as well as ways to navigate these complexities while focusing on making their products affordable and available for consumers.

Triple-I CEO Sean Kevelighan in his opening remarks, noted that effective risk management depends on collaboration across stakeholder groups, as interconnected perils “present a community problem, not just an industry problem.”

JIF keynote speaker Louisiana Insurance Commissioner Tim Temple said facilitating community resilience planning is a top priority for the National Association of Insurance Commissioners (NAIC). The NAIC’s 2025 initiative  – “Securing Tomorrow: Advancing State-Based Regulation” – aims to improve disaster mitigation and recovery by consolidating “the collective expertise of experienced state regulators from across the country, who can share real-time insights and proven strategies,” Temple said.

Among the initiative’s goals is aggregating more data from insurers to better understand challenges to affordability and availability on state levels, which the NAIC can then translate into actionable policy proposals. Such data calls, Temple said, help regulators, legislators, and policyholders focus on improving the cost drivers of insurance rates.

Louisiana has consistently been among the least affordable states for homeowners and auto insurance, according to the Insurance Research Council (IRC), in part because of its reputation for being plaintiff-friendly in civil litigation. Significant tort legislation has been approved in the state, but resistance to reform remains a challenge.

Getting to the roots of high premiums

 After a recent data call in his home state, Temple told the JIF audience, “For the first time in Louisiana, we’re not talking about only premiums. We’re talking about why premiums are where they are.”

A critical lack of transparency surrounding cost drivers persists, however. Temple criticized the National Flood Insurance Program’s Risk Rating 2.0 reforms for not publicly disclosing more information “for individuals and communities to identify and address factors driving up their premiums,” such as “whether increased rates take into account levee systems, pump stations, and other things designed to help mitigate against floods.”

Conversely, government programs like Strengthen Alabama Homes – and the numerous programs it inspired, including in Louisiana – have demonstrated success in communicating the benefits of resilience investments for consumers and policymakers.

“We’re seeing major positive results after just a few short years,” Temple said, noting that, since early 2024, over 5,000 homeowners not chosen for Louisiana’s grant program still decided to invest in the same hazard mitigation, as they may still qualify for the corresponding state-mandated insurance discounts.

“As natural disasters become more frequent and severe, state regulators will continue to drive forward common-sense policies that protect consumers and ensure that insurance remains available and reliable for at-risk communities,” Temple concluded. Developing the database required for such policies is a necessary first step.

Keep an eye on the Triple-I Blog for further JIF coverage.

Learn More

Significant Tort Reform Advances in Louisiana

Louisiana Senator Seeks Resumption of Resilience Investment Program

Louisiana Reforms: Progress, But More Is Needed to Stem Legal System Abuse

Louisiana Is Least Affordable State for Personal Auto Coverage Across the South and U.S.

Who’s Financing Legal System Abuse? Louisianans Need to Know

Study Touts Payoffs From Alabama Wind Resilience Program

Outdated Building Codes Exacerbate Climate Risk

Resilience Investments Paid Off in Florida During Hurricane Milton

Disaster Preparedness, Disaster Resilience, Homeowners Insurance, Legal Environment, Market Conditions

Disasters, Litigation Reshape Homeowners’ Insurance Affordability

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Rising natural disaster costs, increased home repair expenses, and legal system challenges have made homeowners’ insurance significantly less affordable across the United States over the past two decades,  according to new research from the Insurance Research Council. The trend shows no signs of slowing.

The financial burden of protecting one’s home has grown substantially. With homeowners insurance expenditures growing much faster than incomes over the past two decades, American households now dedicate an increasing share of their income to insurance premiums.

 In 2001, homeowners typically spent about 1.19 percent of their household income on insurance coverage. This figure climbed to 2.09 percent – a 75 percent increase – by 2022, the most recent available year’s data.

Projections of average premiums from the Insurance Information Institute suggest the trend will continue escalating, with estimates indicating households could spend 2.4 percent of their income on homeowners’ insurance by 2024 – the highest level recorded in more than two decades.

Wide variation by state

Utah emerged as the most affordable state in 2022, where residents spent only 1.00 percent of their income on homeowners’ insurance. Other states offering relative affordability included Oregon (1.09 percent), Alaska (1.23 percent), and Maryland (1.27 percent).

Louisiana ranked as the least affordable, with households dedicating 4.22 percent of their income to homeowners’ insurance. Disaster-prone states dominated the least-affordable rankings, with Florida (3.99 percent), Mississippi (3.87 percent), and Oklahoma (3.45 percent), following the Pelican State.

Multiple Cost Pressures

The affordability crisis stems from interconnected factors that have intensified pressure on insurance markets, according to IRC. Increased natural catastrophe risk represents a primary driver, with weather-related events becoming more frequent and severe.

Rising home construction and repair costs have compounded the challenge. Supply-chain disruptions have inflated material prices and extended project timelines, directly impacting claim settlements. When homes require repairs or replacement, insurers face significantly higher costs than in previous years, necessitating premium adjustments to maintain financial stability.

Population migration patterns have exacerbated risk concentrations, with more Americans moving to areas susceptible to natural disasters, the report noted. Coastal regions prone to hurricanes, wildfire-vulnerable areas, and tornado-prone territories have seen increased development, creating larger pools of exposed properties that insurers must protect.

Litigation has added another layer of complexity. Insurance companies report challenges with fraud, excessive claims, and legal system abuse following catastrophic events. The expense index – measuring what insurers spend to process, investigate, and litigate claims as a percentage of incurred losses – varies significantly across states, with litigation rates affecting overall costs.

Disaster Preparedness, Disaster Resilience, Homeowners Insurance, Roof Condition

Why Roof Resilience Matters More Than Ever

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By Loretta L. Worters, Vice President, Media Relations, Triple-I

Your roof is more than just a covering over your head. It’s the first line of defense against nature’s most powerful forces.

During National Roof Awareness Week (June 1-7), we spotlight the critical role roofs play in protecting homes, businesses, and communities from severe weather (see infographic) and why building stronger, smarter roofs today is essential for reducing damage and insurance claims tomorrow.

Why roof awareness matters

The roof bears the brunt of wind, rain, hail, fire, and flying debris. Yet, many home and business owners overlook its condition until it’s too late. According to the Insurance Institute for Business & Home Safety (IBHS), a staggering 70 to 90 percent of storm-related insurance claims involve roof damage. Whether it’s shingle loss from 60 mph winds or water intrusion through exposed decking, roof failures can turn a storm into a financial disaster.

FORTIFIED: A better way to build and rebuild

Developed by IBHS after decades of research, the FORTIFIED standard is a voluntary construction and re-roofing method that dramatically improves a building’s ability to withstand severe weather. FORTIFIED Roof™ strengthens the most vulnerable parts of a roof, such as edges, decking, and fastening systems, through methods like:

  • Using sealed roof decks to prevent water intrusion (can reduce damage by up to 95 percent);
  • Requiring ring-shank nails to secure roof decking more effectively; and
  • Reinforcing edges with fully adhered starter strips and a wider drip edge.

Many upgrades are affordable.  A sealed roof deck can cost as little as $600, and switching to stronger nails might cost under $100 for a typical 2,000-square-foot home. Roofs built to the FORTIFIED standard not only protect what matters most; it can also lead to significant insurance discounts in states like Alabama, Oklahoma, and Mississippi. These programs are making roof resilience accessible and cost-effective for homeowners and businesses alike.

“It only takes one storm to turn a minor vulnerability into major destruction,” said Roy Wright, IBHS president and CEO. “At IBHS, we’ve spent decades studying how buildings fail—and how they survive. That research led to the FORTIFIED Roof standard, a proven way to reduce storm damage. It’s affordable, accessible, and one of the smartest investments a homeowner can make for peace of mind and protection.” 

Why It Matters to Insurers

Insurers are increasingly focused on roof resilience because it reduces the number and severity of claims. The FORTIFIED Roof standard is part of a broader industry shift from “detect and repair” to “predict and prevent.”

Poorly maintained or outdated roofs can result in denied claims, higher premiums, or non-renewal of policies. Conversely, resilient roofs may qualify for preferred coverage, lower deductibles, and better insurance options.

“A resilient roof isn’t just a safeguard for a single structure,” said Triple-I CEO Sean Kevelighan. “It’s a smart strategy for reducing risk across entire communities. As frequency and severity of natural disasters rise, insurers are increasingly focused on proactive solutions like the FORTIFIED standard. These improvements help protect property, minimize costly disruptions, and ensure insurance remains available and affordable for more Americans.”

Roofing in wildfire and hurricane zones

Roofs are also vulnerable to wildfire embers, especially in areas where debris can ignite on the roof surface. For wildfire-prone regions, following IBHS’s Wildfire Prepared Home standard and local fire-safe roofing recommendations is critical. Likewise, in hurricane zones, strong connections between roof components can prevent catastrophic failures when wind forces attempt to peel roof decks away.

Replacing or upgrading a roof is one of the most important investments you can make to your property. And thanks to resources like the Roofing Roadmaps from IBHS, homeowners and business owners can make informed decisions about materials, maintenance, and upgrades that will pay off in both resilience and reduced risk.

Learn More:

Study Touts Payoffs From Alabama Wind Resilience Program

FEMA Highlights Role of Modern Roofs in Preventing Hurricane Damage

2025 Tornadoes Highlight Convective Storm Losses

Severe Convective Storm Risks Reshape U.S. Property Insurance Market

Hail: The “Death by 1,000 Paper Cuts” Peril

Catastrophes, Coastal Property, Disaster Preparedness, Disaster Resilience, Homeowners Insurance, Hurricane

Study Touts Payoffs
From Alabama Wind Resilience Program

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A study by the Alabama Department of Insurance, in collaboration with the University of Alabama Center for Insurance Information and Research, shows that widespread adoption of IBHS FORTIFIED construction standards could dramatically reduce insurance claims from hurricanes, while also encouraging property/casualty insurers to maintain coverage in high-risk areas.

Homes built or retrofitted to FORTIFIED standards from the Insurance Institute for Business & Home Safety were found to have suffered far less property damage and a lower volume of insurance claims from Hurricane Sally — which made landfall in Gulf Shores, Alabama, as a Category 2 storm in September 2020 — than non-FORTIFIED properties.

“The results show mitigation works and that we can build things that are resilient to climate change,” said the author of the study, Triple-I non-resident scholar Lars Powell.

A collective effort

Alabama’s proactive approach – which includes mandatory insurance discounts and a state-backed grant program for resilient construction – offers a model for risk mitigation and protecting homeowners from catastrophic winds of tropical cyclones.

“Alabama was an early adopter of FORTIFIED designations for wind loss mitigation,” the report says. “In 2025, there are more than 53,000 FORTIFIED houses in the state,” out of approximately 80,000 nationwide.

The state grants and insurance discounts have been a big motivator for homeowners to make the investment.  Lawmakers in other hurricane-prone states, such as Louisiana, are looking to Alabama’s strategy as they seek solutions for predicting and preventing losses from increasing natural disaster risks.

Learn More:

Outdated Building Codes Exacerbate Climate Risk

Resilience Investments Paid Off in Florida During Hurricane Milton

JIF 2024: What Resilience Success Looks Like

Mitigation Matters – and Hurricane Sally Proved It

Catastrophes, Disaster Preparedness, Disaster Resilience, Severe Convective Storm, Tornado, Wind

2025 Tornadoes Highlight Convective Storm Losses

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Tornado activity in 2025 has surged, with more than 1,000 reported tornadoes as of May 28 and outbreaks spreading across nearly every state east of the Rockies this season, according to according to the NOAA Storm Prediction Center.

Researchers have highlighted a shift in both the timing and geography of tornadoes, raising new safety concerns for communities outside the traditional Tornado Alley states.  The widening prevalence of tornado activity has some experts suggesting that the name “Tornado Alley” be retired.

The 1,010 tornadoes reported is almost 40 percent higher than the 15-year average of 727 tornadoes for the same period. Mississippi leads with 97 tornado reports, followed by Illinois (93), Missouri (89), and Texas (87), according to AccuWeather.

Severe convective storms – which include tornadoes – are among the most common, most damaging natural catastrophes in the United States. The result of warm, moist air rising from the earth, they manifest in various ways, depending on atmospheric conditions – from drenching thunderstorms with lightning, to tornadoes, hail, or destructive straight-line winds.

In 2024, according to Gallagher Re, the economic cost solely from weather and climate events was approximately $402 billion ($151 billion insured).  At least 41 percent of insured losses ($64 billion) resulted from severe convective storms.

So far this year, Gallagher said, the United States has recorded at least eight separate billion-dollar insured loss events from SCS activity so far in 2025. This compares to 13 such events by the end of May in 2024, 11 in 2023, six in both 2022 and 2021, and 12 in 2020.

 In addition to tornadoes, Gallagher said, large hail – measuring two inches or more in diameter – was a major factor in driving losses.

Learn More:

Severe Convective Storm Risks Reshape U.S. Property Insurance Market

Triple-I/Milliman: Severe Convective Storms Restrain P&C Growth

Triple-I Paper Looks at Convective Storms, Mitigation, and Resilience

Some Experts Suggest Retiring the Name “Tornado Alley”

Triple-I Facts + Statistics: Tornadoes and Thunderstorms

Hail: The “Death by 1,000 Paper Cuts” Peril

Triple-I Issues Brief: Severe Convective Storms (Members Only)

Catastrophes, Disaster Preparedness, Disaster Resilience, Regulation, Risk Management, Wildfire

L.A. Homeowners’ Suits Misread California’s Insurance Troubles

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By Lewis Nibbelin, Contributing Writer, Triple-I

Two lawsuits filed in Los Angeles claim major California insurers colluded illegally to impede coverage in wildfire-prone areas, forcing homeowners into the state’s last-resort FAIR Plan.  Accusing carriers of violating antitrust and unfair competition laws, the two suits exemplify an ongoing disconnect between public and insurer perceptions of insurance market dynamics, exacerbated by legislators’ resistance to accommodating the state’s evolving risk profile.

An untenable situation

Both suits claim the insurers conspired to “suddenly and simultaneously” drop existing policies and cease writing new ones in high-risk communities, deliberately pushing consumers into the FAIR Plan. Left underinsured by the FAIR Plan, the plaintiffs argue they were wrongfully denied “coverage that they were ready, willing, and able to purchase to ensure that they could recover after a disaster,” Michael J. Bidart, who represents homeowners in one of the cases, said in a statement.

Established in response to the 1965 Watts Rebellion, the California FAIR Plan provides an insurance option for homeowners unable to purchase from the traditional market. Though FAIR Plans offer less coverage for a higher premium, they cover properties where insurance protection would otherwise not exist. California law requires licensed property insurers to contribute to the FAIR Plan insurance pool to conduct any business within the state, meaning they share the risks associated with those properties.

Intended as a temporary solution until homeowners can secure policies elsewhere, the FAIR Plan has become overwhelmed in recent years as more insurers pull back from the market. As of December 2024, the FAIR plan’s exposure was $529 billion – a 15 percent increase since September 2024 (the prior fiscal year end) and a 217 percent increase since fiscal year end 2021. In 2025, that exposure will increase further as FAIR begins offering higher commercial coverage for farmers, homebuilders, and other business owners.

With a policyholder count that has more than doubled since 2020, the FAIR Plan faces an estimated $4 billion total loss from the January fires alone.

Out of touch regulations

Homeowners are understandably frustrated with dwindling coverage availability, which currently afflicts many other disaster-prone states. Supply-chain and inflationary pressures, which could intensify under oncoming U.S. tariff policies, help fuel the crisis. But California’s problems stem largely from an antiquated regulatory measure that severely constrains insurers’ ability to manage and price risk effectively.

Despite a global rise in natural catastrophe frequency and severity, regulators have applied the 1988 measure, Proposition 103, in ways that bar insurers from using advanced modeling technologies to price prospectively, requiring them to price based only on historical data. It also blocks insurers from incorporating reinsurance costs into their prices, forcing them to pay for these costs from policyholder surplus and/or reduce their presence in the state.

Insurers must adjust their risk appetite to reflect these constraints, as they cannot profitably underwrite otherwise. Underwriting profitability is essential to maintain policyholder surplus. Regulators require insurers to maintain policyholder surplus at levels that ensure that every policyholder is adequately protected.

Restricting insurers’ use of prospective data, however, inhibits risk-based pricing and weakens policyholder surplus, facilitating policy nonrenewals and, in serious cases, insolvencies.

Insurance Commissioner Ricardo Lara implemented a Sustainable Insurance Strategy to mitigate these trends, including a new measure that authorizes insurers to use catastrophe modeling if they agree to offer coverage in wildfire-prone areas. The strategy has garnered criticism from legislators and consumer groups, one of whom is suing Lara and the California Department of Insurance over a 2024 policy aimed at expediting insurance market recovery after an extreme disaster.

“Insurers are committed to helping Californians recover and rebuild from the devastating Southern California wildfires,” Denni Ritter, the American Property Casualty Insurance Association’s department vice president for state government relations, said in a statement about the suit. “Insurers have already paid tens of billions in claims and contributed more than $500 million to support the FAIR Plan’s solvency – even though they do not collect premiums from FAIR Plan policyholders.”

A call for collective action

Litigation prolongs – it does not alleviate – California’s risk crisis. Government has a crucial role to play in addressing it, from adopting smarter land-use planning regulations to investing in long-term resilience solutions.

For instance, Dixon Trail, a San Diego County subdivision dubbed the country’s first “wildfire resilient neighborhood,” models the Insurance Institute for Business & Home Safety (IBHS) standards for wildfire preparedness, but not at a cost attainable to most communities, and few local governments incentivize them. Launched by state legislature in 2019, the California Wildfire Mitigation Program is on track to retrofit some 2,000 houses along these guidelines, with the goal of solving how to fortify homes more quickly and inexpensively. Funded primarily by FEMA’s Hazard Mitigation Assistance Grant program, the pilot has thus far avoided the same cuts befalling FEMA’s sister programs under the Trump Administration.

Regardless of what legislators do, California homeowners’ insurance premiums will need to rise. The state’s current home and auto rates are below average as a percentage of median household income, reflecting a combination of the increased climate risk and of the regulatory limitations preventing insurers from setting actuarially sound rates. Insurance availability will not improve if these rates persist.

To quote Gabriel Sanchez, spokesperson for the state’s Department of Insurance: “Californians deserve a system that works – one where decisions are made openly, rates reflect real risk, and no one is left without options.” Insurers do not wield absolute control over that system, and neither do legislators, regulators, consumer advocates, or any other singular group. Confronting the root causes of these issues – i.e., the risks – rather than the symptoms is the only path towards systemic change.

Learn More:

Despite Progress, California Insurance Market Faces Headwinds

California Insurance Market at a Critical Juncture

California Finalizes Updated Modeling Rules, Clarifies Applicability Beyond Wildfire

How Proposition 103 Worsens Risk Crisis In California

Tariff Uncertainty May Strain Insurance Markets, Challenge Affordability

Issues Brief: California Struggles to Fix Insurance Challenges (Members only)

Issues Brief: Wildfire: Resilience Collaboration & Investment Needed (Members only)

Catastrophes, Disaster Resilience, Homeowners Insurance, Lightning, Wildfire

Triple-I Brief Highlights Wildfire Risk Complexity

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Wildfire risk is strongly conditioned by geographic considerations that vary widely among and within states. The latest Triple-I Issues Brief shows how that fact played out in 2024 and early this year and discusses the importance of granular local data for underwriting and pricing insurance in wildfire-prone areas, as well as for much-needed investment in resilience.

The 2024 wildfire season in the South and Southwest was particularly severe, marked by such events as the Texas and Oklahoma Panhandle fires in February and March and significant blazes in Arizona and New Mexico. The Southwest accounted for the largest number of residential structures destroyed by wildfire, and three of the top five areas for homes destroyed were in the South. 

California accounted for the largest number of homes at risk for extreme wildfires. In the first half, the state experienced an above-average number of fires, though most were contained before growing to “major incident” size. Subsequent rains suppressed subsequent wildfire conditions – and caused substantial flooding. 

But this rain contributed to an accumulation of fuels so that, when hurricane-force Santa Ana winds whipped through Los Angeles County in early January 2025, the conditions were right for fast-moving blazes to tear through Pacific Palisades and Eaton Canyon.

Temperature, humidity, wind, and topography vary too widely for a single “one size fits all” mitigation approach. This underscores the importance of granular data gathering and scrupulous analysis when underwriting and pricing insurance.  It is also important that insurers proactively engage with diverse stakeholder groups to promote investment in mitigation and resilience.

A recent paper by Triple-I and Guidewire – a provider of software solutions to the insurance industry – uses case studies from three California areas with very different geographic and demographic characteristics to go deeper into how such tools can be used to identify properties with attractive risk properties, despite their location in wildfire-prone areas.

Learn More:

Getting Granular to Find Lower-Risk Properties Amid Wildfire Perils

P&C Insurance Achieves Best Results Since 2013; Wildfire Losses, Tariffs Threaten 2025 Prospects

Despite Progress, California Insurance Market Faces Headwinds

California Finalizes Updated Modeling Rules, Clarifies Applicability Beyond Wildfire

California Insurance Market at a Critical Juncture

Catastrophes, Disaster Preparedness, Disaster Resilience, Homeowners Insurance, Technology, Wildfire

Data Granularity Key
to Finding Less Risky Parcels in Wildfire Areas

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As high-severity natural catastrophes – wildfires, floods, hurricanes, and others – become more frequent and more people move into riskier locales, insurance affordability and availability have become a challenge in many states.

Insurers underwrite and price coverage based on the risks they’re assuming, and rising premiums in these states have pushed more homeowners into residual market mechanisms, such as state-backed insurance pools or agencies. Reliance on these funds – which often provide more limited coverage at higher costs – is not sustainable in the long term.

To ensure market stability and continued insurance availability and affordability, insurers must leverage more granular and dynamic risk models that account for real-time environmental conditions, mitigation measures, and property-specific characteristics. A new paper by Triple-I and Guidewire – a provider of software solutions to the insurance industry – uses case studies from three California areas with very different geographic and demographic characteristics to show how such tools can be used to identify properties with attractive risk properties, despite their location in wildfire-prone areas.

California’s risk profile

In addition to its particular risk characteristics, California’s insurance challenge is exacerbated by a 1988 measure – Proposition 103 – that has constrained insurers’ ability to profitably insure property in the state. In a dynamically evolving risk environment that includes earthquakes, drought, wildfire, landslides, and damaging floods, regulatory interpretation of Proposition 103 has made it hard for some insurers to offer coverage in the state.

In some cases, this has led to insurers limiting or reducing their business in the state. With fewer private insurance options available, more Californians are resorting to the state’s FAIR Plan, which offers less coverage for a higher premium. For many, this “insurer of last resort” has become the insurer of first resort. This isn’t a tenable situation for the state or its policyholders. California’s insurance availability/affordability challenges will require a multi-pronged approach, and underlying every component is the need for granular, high-quality, reliable data.

Modeling based on granular data

Guidewire’s analysis, based on its HazardHub Wildfire Score, has shown that wildfire mitigation and home hardening can reduce wildfire damage by as much as 70 percent. But identifying less risky lots in such areas is no easy task.

“Every property being assessed for wildfire risk is unique,” the report says. “Therefore, it’s important to subject as many relevant variables as possible to analysis. For example, proximity of structures to fuel is important – but, to be more predictive, it helps to know more: What kind of fuel? Is there potential for a wind-driven event? Is the property on a hill? If so, is it north-facing?”

Guidewire’s model includes standard variables, such as slope, aspect, wildfire history, wind, and the amount of nearby vegetation. It also includes differentiators like vegetation type and fire-suppression success rate.

“The traditional approach to wildfire risk assessment has left many Californians without access to affordable property insurance coverage,” said Triple-I Chief Insurance Officer Dale Porfilio. “Our research shows that with more detailed, property-level analysis, insurers can confidently offer coverage in areas previously deemed too risky.”

Important moves by California

California has taken steps to address regulatory obstacles to fair, actuarially sound insurance underwriting and pricing – most notably, the state’s Sustainable Insurance Strategy, an ambitious plan released by Insurance Commissioner Ricardo Lara in 2023 plan aimed at safeguarding the health of the insurance market while ensuring long-term sustainability. A key component of the plan is a requirement that insurers writing homeowners coverage in the state write no less than 85 percent of their statewide market share in areas identified by the commissioner as “under-marketed.”

Tightly focused, data-driven analysis using tools like the HazardHub Wildfire Score, can go a long way toward helping insurers meet those requirements by identifying less risky parcels in undermarketed areas.

“The Triple-I analysis highlights how next-generation tools and data can uncover lower-risk properties – even in high-risk areas – empowering insurers to expand coverage confidently and responsibly,” said Leo Tenenblat, Senior Vice President and General Manager, Data and Analytics at Guidewire.

Learn More:

Despite Progress, California Insurance Market Faces Headwinds

California Insurance Market at a Critical Juncture

California Finalizes Updated Modeling Rules, Clarifies Applicability Beyond Wildfire

California Risk/Regulatory Environment Highlights Role of Risk-Based Pricing

How Proposition 103 Worsens Risk Crisis in California

Catastrophes, Coastal Property, Disaster Resilience, Flood Insurance, Floods, Homeowners Insurance

Louisiana Senator Seeks Resumption of Resilience Investment Program

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By Lewis Nibbelin, Contributing Writer, Triple-I

Louisiana Sen. Bill Cassidy recently took to the Senate floor to call for restoration of FEMA’s Building Resilient Infrastructure and Communities (BRIC) program, whose elimination the agency announced on April 4.

Established by Congress through the Disaster Recovery Reform Act of 2018, the BRIC program has allocated more than $5 billion for investment in mitigation projects to reduce economic losses from floods, wildfires, and other disasters for hundreds of communities. Ending BRIC will cancel all applications from 2020-2023 and rescind more than $185 million in grants intended for Louisiana, leaving the 34 submitted and accepted projects funded by those grants in limbo.

Whereas the FEMA press release described BRIC as “wasteful and ineffective,” Cassidy identified “not doing the program and then having to rescue communities when the inevitable flood occurs – that is waste, because we could have prevented that from happening in the first place.”

Mitigation investment saves

Cassidy explained that flooding causes up to $496 billion in damages annually throughout the United States, adding that, “when we invest in levees and floodwalls, communities are protected when the storm hits, and we save billions on a recovery effort we never had to do.”

A 2024 study backed by the U.S. Chamber of Commerce supports this claim, which found that disaster mitigation investments save $13 in benefits for every dollar spent.

FEMA’s decision coincides with recovery efforts in Natchitoches, a small Louisiana city, after flash flooding inundated homes and downed power lines just weeks before. BRIC was set to fund improvements to the city’s backup generator system to pump out floodwater during severe weather.

Similarly, Lafourche Parish will lose $20 million to strengthen 16 miles of power lines, which Cassidy noted toppled “like dominos” during last year’s Hurricane Francine. Jefferson Parish residents displaced following Hurricane Ida in 2021 will lose the home elevation disaster grants they finally secured earlier this year.

“Louisiana was the third-largest recipient of BRIC’s most recent round of funding and is the largest recipient on a per capita basis,” Cassidy said. “Without BRIC, none of these projects would be possible.”

A national problem

Beyond Louisiana, Cassidy pointed to numerous states ravaged by severe storms so far this year, particularly inland communities where flooding is traditionally unexpected. At least 25 people died amid a severe weather outbreak across the southern and midwestern U.S. last month, underscoring a growing need for resiliency planning in non-coastal areas.

BRIC is one of many programs facing sudden termination under the Trump Administration. Twenty-two states and the District of Columbia have filed a lawsuit demanding the federal government unfreeze essential funding, including BRIC grants. Though the administration is reportedly complying with a federal judge’s order blocking the freeze, the states involved claim funding remains inaccessible.

Louisiana has not joined the lawsuit, but Cassidy emphasized the congressional appropriation of the program and requested the fulfillment of preexisting BRIC applications. He argued that “to do anything other than use that money to fund flood mitigation projects is to thwart the will of Congress.”

As President Trump weighs disbanding FEMA entirely – even as FEMA responds to record-breaking numbers of billion-dollar disasters – it is imperative to recognize the vast co-beneficiary benefits of disaster resilience, and develop our partnerships across these stakeholder groups.

Learn More:

BRIC Funding Loss Underscores Need for Collective Action on Climate Resilience

Louisiana Reforms: Progress, But More Is Needed to Stem Legal System Abuse

Undisclosed Flood Risks Spur Wave of State Laws

Tenfold Frequency Rise for Coastal Flooding Projected by 2050

Triple-I Brief Highlights Rising Inland Flood Risk

Hurricane Helene Highlights Inland Flood Protection Gap

Removing Incentives for Development From High-Risk Areas Boosts Flood Resilience

Executive Exchange: Using Advanced Tools to Drill Into Flood Risk

Disaster Preparedness, Disaster Resilience

Weather Balloons’ Role
in Readiness, Resilience

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The National Weather Service (NWS) – part of the National Oceanic and Atmospheric Administration (NOAA) – recently announced that it was reducing the number of weather balloons it launches across the country, citing staffing shortages at 11 NWS locations.

The launch cuts followed NOAA’s announcement of hundreds of layoffs or voluntary resignations across the agency, including at the NWS, related to efforts by President Donald Trump’s Department of Government Efficiency (DOGE). Former NOAA Administrator Rick Spinrad said in a press conference that about 650 NOAA employees were among those fired, and his former colleagues in the agency said they had been ordered to “identify another 1,029 positions” for termination.

Some of these suspensions – for example, in Omaha, Neb. – have been lifted. Two meteorologists are set to arrive from across the country to staff the Omaha office following lobbying from Rep. Mike Flood (R. – Neb).

However, the future of launches from the remaining 10 locations remains unclear.

What do weather ballons do?

Apart from occasionally being taken for extraterrestrial aircraft, weather balloons rarely attract public attention. Carrying a device called a “radiosonde”, they typically fly for a couple of hours – potentially reaching 100,000 feet – and are used for several purposes, from gathering data for weather prediction models and local forecasts to providing input for pollution and climate research.

“Weather balloon launches can be especially critical in severe storm situations,” said Dr. Phil Klotzbach, a researcher at Colorado State University and a Triple-I non-resident scholar. “They give us detailed information on temperature, pressure, and humidity that can help us determine potential impacts from tornadoes and hail.”

In addition, Klotzbach said, before U.S. hurricane landfalls, “NWS offices will often coordinate additional weather balloon launches to provide critical data to weather forecast models that improve predictions of the hurricane’s track.”

“While satellite technology continues to improve and provides invaluable information that has dramatically improved forecasting ability over the past several decades, weather balloons still serve a vital role in helping to predict weather events,” Klotzbach said.  

Taken-for-granted resources highlighted

As with the Federal Emergency Management Agency’s recent termination of its Building Resilient Infrastructure and Communities (BRIC) grant and loan program, the sudden and substantial downsizing of NOAA’s data-gathering and forecasting resources underscores the extent to which government agencies that operate below the public’s radar screen help society and industry take steps to avoid costly losses related to weather- and climate-related events.  

In the absence of reliable federal support, it’s more important than ever for families, communities, businesses, and other stakeholders to work together to mitigate risks and build resilience. The insurance industry is uniquely well positioned to support and advance these efforts.

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BRIC Funding Loss Underscores Need for Collective Action on Climate Resilience

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