On June 10, St. John’s University’s Maurice R. Greenberg School of Risk Management, Insurance, and Actuarial Science hosted a pivotal conference addressing the insurance industry’s challenges amid climate change. The event, titled “Insurance and Resilience in a Changing Climate,” convened executives, economists, thought leaders, and policymakers to discuss new risks and potential solutions.
Held at the University’s Manhattan campus, the conference drew around 100 industry leaders to deliberate on climate change-related challenges, strategies to mitigate losses, and methods to enhance the insurance sector’s public appeal. The Greenberg School, part of The Peter J. Tobin College of Business, organized the event, with sponsorship from industry giants such as Galway Insurance Holdings, KPMG, Lloyd’s, PartnerRe, RenaissanceRe, Vantage Risk, and W.R. Berkley.
Dr. Maciek Nowak, Dean of The Peter J. Tobin College of Business, underscored the importance of the conference. “From our Manhattan campus, which is just a few feet above sea level, to catastrophic events worldwide, climate change poses tremendous risks,” he stated. “The question is not when to prepare but how.”
Prominent speakers included Dr. Matthew Kahn, Provost Professor of Economics at the University of Southern California, who urged executives to adapt proactively. Using a pop culture analogy, he contrasted the proactive strategies akin to Star Trek’s Mr. Spock with the complacency of Homer Simpson from The Simpsons.
Since the 1990s, insurers have grappled with rising liabilities due to increasing atmospheric and sea temperatures, resulting in more frequent and severe natural disasters. These conditions have compelled insurers to raise premiums, reduce coverage, or withdraw from certain states. Paul Martin, Vice President of State Relations at the Reinsurance Association of America, highlighted the industry’s efforts. “We can’t control the weather or building material costs, but we can advocate for better building codes, land use policies, and greater underwriting freedom.”
Gregory S. Hendrick, CEO of Vantage Risk and a St. John’s Board of Governors member, emphasized the escalating costs of development and rebuilding. “There are more homes and businesses in storm paths, and the replacement costs are rising faster than the consumer price index,” he explained.
Charlie Sidoti, founder and Executive Director of InnSure, called for innovation within the insurance and reinsurance sectors. He stressed the need for comprehensive rebuilding cost assessments and urged local leaders to consider how land use decisions impact community insurability.
Panelists also discussed how government and public efforts could stabilize the insurance ecosystem. They suggested that builders offer homeowners high-quality roofing options to enhance wind damage protection, and that homeowners be educated on the value of such improvements over cosmetic upgrades.
Mark J. Browne, Ph.D., Chair of the Faculty at the Greenberg School, emphasized the importance of the School as a hub for tackling societal issues. Samantha Medlock, Assistant Administrator for Resilience Strategy at FEMA, outlined governmental initiatives, including the identification of Community Disaster Resilience Zones (CDRZs). Notably, New York City, with its deep harbor, dense population, and socio-economic disparities, has 17 CDRZs.
Medlock highlighted FEMA’s partnerships with community organizations to enhance climate resilience and equity. “The CDRZ is both a program and a movement, fostering public-private partnerships to build climate resilience,” she said.
The conference marks the beginning of a series of initiatives by St. John’s University aimed at equipping industry leaders with the knowledge to navigate the evolving landscape of insurance in the face of climate change.
