10 years after hurricane Katrina: Mitigating the losses from windstorm events

While scientists cannot provide a conclusive answer to the question of how climate change impacts storms, most agree severity of windstorms will change in future. Based on Allianz experience the severity of losses from weather events including windstorms is already increasing. The average amount paid for extreme weather events including windstorms by insurers between 1980 and 1989 totaled $15bn a year. Between 2010 and 2013 this rose to an average of $70bn a year.

Adequate preparedness before a storm arrives is key in order to mitigate potential losses, particularly in areas such as construction sites which are extremely susceptible. There are four crucial areas of windstorm loss mitigation:

  • Pre-windstorm planning including development of a comprehensive emergency plan and testing it. Inspect roofs and the building envelope; anchor large equipment and prepare for possible flooding.
  • During a windstorm response personnel should monitor for leaks, fire and damage.
  • After a windstorm the site should be secured to prevent unauthorized entry. An immediate damage assessment should be conducted if safe to do so.
  • Business continuity management is crucial as just-in-time production, lean inventories and global supply chains can easily multiply negative effects. Property damage and business interruption are usually covered by insurance policies but often there is loss of market share, suppliers, clients and staff. Businesses should develop and test business continuity plans and communication cascades. Have insurance policies at a safe accessible location.
Windstorms with the highest insured losses
Windstorms with the highest insured losses

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Christina Hubmann
Allianz SE
Phone: +49.89.3800-4211
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