The current economy and urban infrastructure of the U.S. must be“climate-proofed” for resiliency, said panelists at a majorclimate-change panel that included speakers from insurance,business and government organizations.

“In 2012 the impacts of severe weather cost the global economysome $160 billion, with only $70 billion of that being covered byinsurance,” said Philip Ryan, chairman of Swiss Re Americas, afounding sponsor of Climate Week. “As experts on risk, everythingwe see points to the inescapable fact that climate change issomething which we simply cannot ignore.”

Held on September 23, Climate Week 2013 was the fifthanniversary of an annual global summit where political and businessthought leaders discuss solutions to slow and mitigate the effectsof climate change. Attendees included entrepreneur Sir RichardBranson, World Bank president Jim Kim, US Secretary for the NavyRay Mabus and other dignitaries.

There are $10 trillion in insured assets along the vulnerableportions of U.S. coastlines, Swiss Re wrote in its 2013 “Mind theRisk” climate change report. According to Swiss Re, New York Cityis the U.S. urban area most exposed to storm surge, with 1 millionpeople directly at risk.

“Eleven months after Hurricane Sandy devastated the US AtlanticCoast, causing approximately $70 billion in economic losses, we arestill rebuilding,” said Ryan. “The majority of losses not coveredby insurance are paid for by the taxpayer. By addressing the crisisof climate change — through prevention, preparedness and financialprotection — we can make our communities more resilient.”

Historically, level of loss caused by Sandy may occur once every70 years, wrote Swiss Re. Considering climate change causing risingsea levels and stronger storms, a similar storm in the future maycause the City a loss of $35 billion in 2025 and $90 billion—fivetimes Sandy's impact—by 2055.

In an email to PC-360, Mark Way, head of sustainability at SwissRe Americas, said the catastrophes of previous years, includingHurricane Irene and the 2012 Ohio-Maryland derecho, should be usedas a lesson about U.S. dependence on technology andtransportation—a lesson producers must take to heart.

Climate Week speakers said that the National Flood InsuranceProgram (NFIP), which is operating at a $24 billion debt, providesalmost all residential flood coverage in the U.S.

“In addition to the lack of [flood] insurance, regionalcongestion will make recovery more complex and costly,” warned Way.“The environment we live in today is built for the climate of thepast, not the climate of the future. This needs to beaddressed.”

Way said insurance plays an important role in the culture ofresiliency, as the insurance industry creates transparency aboutthe risks people and businesses face by using actuarially basedrates to calculate the cost of policy premiums.