Bermuda Insurers and Reinsurers Highlight Key Provisions of Obama Climate Action Plan

Bermuda Insurers and Reinsurers Highlight Key Provisions of Obama Climate Action Plan
ABIR President Kading Urges Cooperation on Hazard Mitigation

Washington, DC (July 1, 2013)—Bradley Kading, president and executive director of the Association of Bermuda Insurers and Reinsurers (ABIR), today released a letter sent to President Obama in response to his Climate Action Plan that commends the President for highlighting hazard mitigation, building resilience and land use planning in tackling “one of the great challenges of the 21st century” and offering continued cooperation from Bermuda’s insurance and reinsurance sector.

“In 2009 our membership endorsed a Climate Change policy statement and our membership has backed scientific research on climate change through the Risk Prediction Initiative work of the Bermuda Institute for Ocean Sciences (BIOS) – a leading Bermuda-based climate science research facility,” Kading wrote. “We would welcome the opportunity to work with your Administration in its outreach to insurance leaders in order to further the understanding of climate change risks and to better promote public policy decisions that will encourage the insurability of homes and businesses.”

Of particular relevance to ABIR was the President’s proposal to learn from the lessons of Hurricane Sandy and build safer, more resilient buildings and communities to better protect people and property. Publicly reported insured losses from Hurricane Sandy currently stand at over $19 billion but experts estimate insured losses between $20 and $25 billion. Regardless of the final totals, international insurance companies are expected to cover roughly 50 percent of losses, estimated today at more than $9 billion, with Bermuda reinsurers contributing an estimated $3 billion in claims payments.

“We believe the government’s heightened focus on hazard mitigation, building resilience, land use planning and building safer/stronger communities enhances the opportunities for private capital to insure and reinsure catastrophe exposed risk thus reducing further exposure to taxpayers in subsidizing public insurance programs,” Kading concluded. “Importantly it would also protect people and property from damage and injury with stronger and safer communities.”

About ABIR: The Association of Bermuda Insurers and Reinsurers (ABIR) represents 21 international insurers and reinsurers. With underwriting operations in Bermuda and with operating subsidiaries in the United States and Europe, these global carriers derive business income from over 100 countries around the world. ABIR’s mission is to represent the public policy interests of Bermuda’s Class 4 insurers and reinsurers around the world, giving special priority to regulatory action in Bermuda, Europe, US and international regulatory forums; and to promote Bermuda’s Class 4 reinsurers as the best in the business in ceding insurer forums. For more information, please visit: www.abir.bm.

Contact:
Niamh Power
(202) 879-8475
NPower@podestagroup.com

Category: Press Releases