Why traditional recovery methods fail during climate crises

#USDisasterServices A painful read about the state of America's disaster recovery system written by Dr. Damon Winter, an assistant professor of emergency management at the Massachusetts Maritime Academy. The help Americans receive after disasters isn’t just inadequate. It’s complicated to navigate and painfully slow to arrive. From the time it takes to complete recovery — measured in years, not months — to the labyrinth of policies, regulations, false promises and lawsuits, the reward for surviving a disaster is being forced into a system so cruel it constitutes a second disaster. So few resources are available to survivors that some become homeless or live on the brink of homelessness for years, while others have no option but to continue living in their mold-filled homes. According to a 2023 survey of people in Houston, 8 percent of those experiencing homelessness cited a disaster, including Hurricane Harvey in 2017, as the cause. The emotional toll of recovery is breaking people. Researchers have found that the circumstances of disaster recovery help to explain increases in domestic violence, a range of mental health issues, worsening physical health in people with pre-existing conditions and suicide. With climate change and its effects accelerating and intensifying, this post-disaster hell is one in which more people in more places will find themselves. Our system isn’t ready. Insurance was supposed to be a safety net. Still, as the risks from a warming world increase from North Carolina to California, major insurers are placing new limits on the hazards they cover — or leaving altogether. The government is far from ready to make up the difference. But it must find a way to keep up — and get significantly more money in survivors’ hands. America’s approach to disaster recovery was designed to limit government assistance. Today many federal agencies have some role in recovery, but the Federal Emergency Management Agency is central. FEMA said that since 2015, the earliest date for which the agency could provide data, it has awarded over $158.2 billion for disaster relief and more of that funding went to public projects like removing debris, replacing infrastructure and rebuilding public buildings than to individuals in need. This leaves disaster survivors with only their own resources, or whatever they can get from nonprofits. In 2022, the Federal Reserve found that 37 percent of Americans would struggle to afford even a $400 emergency — not enough to cover the cost of an evacuation or a month’s rent, let alone rebuild an entire life. The federal government’s approach to recovery tends to favor wealthier homeowners — a group that skews heavily white — in part because they often have insurance and the ability to take out a loan. Renters, people who are illiterate or do not speak fluent English, people with disabilities, single parents or others with distinctive needs are less likely to get help.

Working in policy, I’ve seen firsthand how the challenges we face today demand more holistic approaches. The traditional tools we’ve relied on—designed to address single-issue problems—are no longer sufficient. Our interconnected world presents overlapping crises that amplify each other in unpredictable ways. 🔍The concept of polycrisis—where crises collide and create something more complex—perfectly describes the landscape we’re navigating. 🔄How It’s Changing the Game Take the EU’s climate policy as an example. Once a leader in transformational, evidence-based policymaking, the EU had to shift gears when faced with COVID-19, an energy crisis, and the war in Ukraine. Instead of driving bold new changes, evidence became a tool to defend existing policies—a shift from transformational to instrumental. 🌟 Why Some Countries Handle Polycrisis Better: During COVID-19, the UAE demonstrated remarkable resilience. Why? The answer lies in system design. Working on the economic recovery task force, I witnessed firsthand how: 1️⃣ Institutional Structure Matters Quick decision-making pathways Clear communication channels Flexible response mechanisms 2️⃣ Task Force Success Factors: From my experience, two critical elements stood out: Freedom to speak truthfully (even when it's difficult) Credibility of expertise and recommendations 3️⃣ Power Distribution is Key The UAE's approach to polycentric governance meant: Decisions made closer to where they're implemented Multiple centers of authority working in harmony Reduced bureaucratic bottlenecks 💡 Takeaways: Polycrisis is the new normal - traditional approaches won't cut it Success requires flexible, interconnected responses Task forces need independence and credibility System design matters more than ever Cross-sector collaboration is crucial The challenges may be complex, but they also present an opportunity to rethink how we craft policy. By embracing uncertainty and working collaboratively, we can create solutions that are as interconnected as the crises they aim to solve.

Fortune favors the prepared. Nowhere is this truer than in the insurance industry’s response to climate disasters. As a matter of fact,over half a trillion euros have been lost to natural catastrophes in Europe since 1980, still less than a third of these losses were insured. And day by day this financial protection gap is reaching a critical level. Insurers, once the backbone of resilience, are retreating from high risk areas, leaving entire communities exposed. And traditional model of reacting after disasters is no longer viable. Therefore industry must shift from merely paying claims to actively preventing losses and strengthening resilience before disaster strikes. Integration of insurance with Disaster Risk Management (DRM) cannot be treated just as an opportunity,it has become an obligation. Relying on outdated historical loss models is no longer enough. And now it’s absolutely important for Insurers to embrace AI driven risk modeling, satellite imaging, and drone surveillance to predict and mitigate losses in real time. How about exploring new age solutions ? Parametric insurance, which triggers automatic payouts based on predefined disaster conditions, can help in eliminating delays and ensuring immediate liquidity. Blockchain powered smart contracts can further streamline claims, reducing inefficiencies that often amplify the financial impact of disasters. Sadly despite these advancements, insurers still remain reactive, pricing risk instead of preventing it. This outdated mindset must change. Public private partnerships (PPPs) offer a crucial path forward. Programs like Turkey’s Catastrophe Insurance Pool (TCIP) and African Risk Capacity Group demonstrate that sustainable, affordable coverage is possible. Capital market solutions such as catastrophe bonds (CAT bonds) provide additional capacity, allowing insurers to manage extreme risks more effectively. However, without regulatory coordination and cross border collaboration, these solutions will remain underutilized. And we should also keep in mind that this crisis is not just about financial exposure,it’s about trust. Opaque pricing, exclusions, and slow claims processing have eroded public confidence in the industry. Therefore Insurers must rebuild trust by educating policyholders, fostering transparency, and making resilience a shared priority. Ultimately future of insurance isn’t just about paying claims, it’s about preventing disasters from becoming financial catastrophes. If the industry waits until the next major event forces action, it may already be too late. Time to act is now. Refer attachment for detailed insights ⬇️ #Insurance #ClimateRisk #Resilience #ParametricInsurance #Blockchain #DisasterManagement #RiskTransfer #LinkedIn

Emergency management was built for a different era—when disasters were singular events with clear beginnings and endings. That world no longer exists. Today, crises overlap and escalate—climate disasters trigger infrastructure failures, which spark economic and social instability. Yet, when experts discuss FEMA’s future, they focus on structural tweaks: ✔ More funding for state programs ✔ Staffing adjustments ✔ Potential agency restructuring But what if the real issue isn’t FEMA’s design—but the way we approach risk itself? Instead of focusing on response and recovery, we need to integrate disaster planning into infrastructure, policy, and local decision-making—before the next crisis even begins. 📖 Read the full analysis: https://lnkd.in/e5DMKMek #DisasterPreparedness #RiskManagement #Leadership #EmergencyResponse