Seeing Growing Natural Disaster Risk: Kousky

The video discusses the increasing frequency of extreme weather events and their implications for investors, insurers, and governments. It highlights the need for new modeling tools to assess climate risks and the roles of the public and private sectors in managing these risks. The challenges of shifting risk to the public sector and the need for reform in disaster funding are also explored. Finally, it emphasizes the importance of rethinking rebuilding strategies after disasters to better prepare for future events.

What is the main reason investors need to pay attention to extreme weather events?

• They have no impact on financial markets.

• They are only affecting certain regions.

• They are consistent and affect investment models.

• They are becoming less frequent.

Why is historical experience no longer a reliable indicator for insurers?

• Natural disasters have decreased in frequency.

• Natural disasters are occurring at unprecedented scales and locations.

• Historical data is too expensive to analyze.

• Insurers have better tools now.

What is a key difference between the public and private sectors in managing climate risk?

• The public sector invests in long-lived infrastructure.

• The private sector has a long-term view.

• The private sector does not adjust policies based on risk.

• The public sector focuses on short-term risks.

What happens when private insurers withdraw from high-risk areas?

• The risk is transferred to the public sector.

• Private insurers lower their premiums.

• The public sector stops providing insurance.

• The risk is eliminated.

What is a potential consequence of shifting risk to the public sector?

• It reduces taxpayer burden.

• It makes insurance more affordable.

• It may ultimately increase taxpayer costs.

• It eliminates the need for insurance.

Why might Congress need to appropriate more funds for FEMA?

• To eliminate FEMA's role in disaster response.

• To decrease the amount of disaster aid.

• To handle more severe and frequent disasters.

• To reduce the number of federal programs.

What should be the focus when rebuilding after a disaster?

• Rebuilding exactly as before.

• Rebuilding in a way that prepares for future events.

• Rebuilding with the cheapest materials available.

• Avoiding any rebuilding efforts.