The role of insurers in driving post-hurricane risk reduction investments

To protect households and communities from growing losses due to disasters and stabilize climate-stressed insurance markets, investments in cost-effective risk reduction must be expanded. Using a unique survey of survivors of one of four U.S. landfalling hurricanes, the researchers investigate the decision to invest in mitigation measures during rebuilding.

The survey finds that the majority of households reported receiving information from their insurance companies, followed by the government and then their social network. It also finds that property owners who were informed about mitigation actions are roughly 2.9 times more likely to engage in risk reduction actions. The study finds that insurers play a key role in this process by providing both information and financial incentives.