Global Assessment Report on Disaster Risk Reduction 2013
From Shared Risk to Shared Value: the Business Case for Disaster Risk Reduction

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ment instruments and risk models are being employed to provide checks and balances to proprietary models that for public entities, such as local governments or scientific institutions, can be a ‘black box’ (see Box 15.8). These new initiatives open the path to improved access to multi-dimensional risk information for a variety of stakeholders.
(Source: Florida International University, Extreme Events Institutexi )
Box 15.8 A ‘Public Hurricane Loss Model’ for Florida
To address the challenge of limited access to proprietary risk models available from the insurance industry, Florida International University (FIU) in Miami has begun developing a public loss model to assess hurricane risk in Florida. The model provides results on expected annual insured losses for specific properties or by coverage, construction type, ZIP code and county for the state of Florida. It also calculates the probable maximum loss that should be insured for any specific property that can then be compared with results and premiums proposed by insurance companies.

This model does not compete with proprietary models, but instead seeks to complement them and provide additional sources of information. Thus, it was developed with the support of nine public institutions and private sector organisations and certified by the Florida Commission on Hurricane Loss Projection Methodology. Although the model already includes the quantification of economic benefits of hurricane mitigation, FIU is working to enhance the model with storm surge and flood hazard components.

i For example, in Panama, the System for National Investment Planning (SNIP) regulation only applied to large-scale projects of more than US$10 million (GAR 13 paperOrihuela, 2012

GAR13 Reference Orihuela, J.C. 2012.,Understanding Existing Methodologies for Allocating and Tracking DRR Resources in 6 Countries in the Americas: Colombia, Costa Rica, Guatemala, Mexico, Panama and Peru., Study commissioned by UNISDR., Geneva,Switzerland: UNISDR..
Click here to view this GAR paper.

ii The statement made by New York’s Metropolitan Transit Authority chairman Joseph J. Lhota in the aftermath of Sandy could not be clearer. On the morning of 30 October 2012, he said: “The New York City subway system is 108 years old, but it has never faced a disaster as devastating as what we experienced last night. Hurricane Sandy wreaked havoc on our entire transportation system, in every borough and county of the region.” ( Tracking_Storm_Sandy/54277687).



v 41 of 94 countries, as of January 2013.

vi The Australia Indonesia Facility for Disaster Risk Reduction is a partnership between the Australian and Indonesian governments aiming to reduce the impact from natural disasters by “strengthening national and local capacity in disaster management in Indonesia, and promoting a more disaster resilient region”.

vii Information provided directly to UNISDR by Geoscience Australia in Support of the 2013 Global Assessment Report.
viii Swiss_Re_Global_Flood_Zones_enabling_better_business_decisions.html and

ix Information provided directly to UNISDR by Willis Re in support of the 2013 Global Assessment Report.

x Information provided directly to UNISDR by GEM in support of the 2013 Global Assessment Report. For more information on GEM, see:

xi Submitted as an unpublished case study to the 2013 Global Assessment Report. For more information on the Model, see: http://
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