Land-use planning can help communities adapt. A new paper from the Global Federation of Insurance Associations (GFIA) makes the argument that insurers need to be included in land-use planning decisions.
The paper, Planning for the Future: A Road Towards Resilience, provides recommendations for involving insurers in the effort to help communities better prepare for natural catastrophes while also strengthening the sector’s role by integrating risk and resilience into land-use planning.
“Across the world, natural disasters caused $120-billion in economic losses in the first half of 2024 alone – of which, only half was insured,” they write, adding that land-use planning is a vital and effective tool for building resilience to natural catastrophes. “Given the insurance sector’s expertise in risk management, GFIA highlights the importance of involving insurers in land-use decisions to enhance resilience and improve insurability.”
Along with recommendations for adaptation to the world’s increasing number of natural catastrophes, the paper includes a look at the increase in these disasters over time. “For insurers, more frequent and severe disasters result in a growing number of losses which, in certain cases, put the question of affordability of insurance on the table,” the paper warns. “Land-use planning holds significant potential is a key strategy in mitigating the impact of increasing natural catastrophes. It is a well-established approach and serves as a vital tool for managing competing interests in land use.”
The definition of land-use planning is also examined, along with the benefits and challenges associated with land use planning, which the paper’s authors say are numerous and complex. (The paper discusses the challenges associated with relocating populations. It warns that campaigns focused on risk culture should not be confused with risk awareness. It discusses different education opportunities, collaboration between the public and private sector and discusses the effort to “build back better” while also providing examples.)
They say there is a growing need for accurate and up-to-date information, as well. “Current systems do not always incorporate natural hazards, climate projections and decision scenarios, which means that decisions are often based on outdated assumptions and unreliable data,” they write. “It is imperative that decision-makers have access to high-quality information, consistent, updated data and the ability to use it effectively.”
The paper goes on to say that the insurance sector is equipped with robust expertise in risk management that it is willing to share with public authorities. “Involving insurers in land-use planning can improve overall outcomes while also strengthening the sector’s ability to insure risks.”
