Allstate projects high costs from disaster resilience funding cuts

Takeaways:

• Sectors are collaborating to mitigate risk, Allstate executive says
• Every dollar not invested will cost $33 in economic loss
• Emergency management professionals say coordination of efforts is lacking

Local governments and private entities are starting to step up on weather disaster mitigation and recovery efforts after cuts to U.S. federal agencies, according to a research report by Allstate and the U.S. Chamber of Commerce.

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"We're seeing more collaboration across sectors and the conversation shifting toward shared responsibility, with public private partnerships working together to reduce risk and build lasting resilience," said Rich Loconte, senior vice president, government and industry relations at Allstate, in a written response to questions. 

Allstate partnered with the Chamber, he added, to "spotlight how smart, upfront investments can reduce damage, save lives and lower recovery costs."

Lost future economic activity will cost $33 for every dollar not invested in disaster resilience, according to the research. Investment in disaster resilience measures in hurricane-prone areas could prevent the loss of more than 70,000 jobs in the U.S., according to the research. The report bases these projections on disasters happening in the next 10 years, through 2035.

"The new research shows how resilience spending saves jobs and lives and protects communities from higher economic costs when disasters strike," Loconte said.

The report, titled "Beyond the Payoff: How Investments in Resilience and Disaster Preparedness Protect Communities," includes economic modeling and a survey of emergency managers, engineers, planners and other resilience professionals. It breaks down the potential impacts of a disaster that would on average cost $1 billion, depending on the extent of resilience efforts, from high to low – like current investment – to limited, if funding is reduced.

Coordination of public and private resilience efforts is poor, about half of those surveyed said. Federal financial assistance is the most needed form of support in a disaster, 58% of those surveyed said. Clearer processes and better resource allocation would have the biggest impact on improving public private partnerships, according to 59% of those surveyed.

"Few experts believe that any level of government is fully prepared for weather-related disasters," the report states. "These findings underscore the need for smarter investment and stronger collaboration across sectors, smarter investment, and a shared commitment to building resilience across sectors and communities."

Loconte pointed to Florida and Alabama as examples of states that are making significant efforts, citing hurricane response by Florida's Department of Emergency Management and the Strengthen Alabama Homes program to help homeowners upgrade and fortify roofs.