AXA XL launch 'optimising resilience' research with the Cambridge Centre for Risk Studies

London - September 06, 2024

• Does mitigation work: The research evaluates what is effective in terms of risk mitigation in the face of more frequent and severe North American hurricanes
• Pre-disaster resilience spending: For approximately every additional US Dollar Federal Emergency Management Agency (FEMA) spend, 16 USD is saved in damages
• Building codes: Comparing hurricanes Charley, Wilma and Ian shows that building codes established post-hurricane Charley have significantly reduced wind damage impact

Today, AXA XL has published new research conducted by the Cambridge Centre for Risk Studies (CCRS) to evaluate how effective specific methods of mitigation are in the context of North American Hurricanes.

The research shows how pre-disaster resilience spending by FEMA has actively reduced the cost of damages across US counties impacted by hurricanes.

Additionally, a comparison of three hurricanes similar in size and path (Charley in 2004, Wilma in 2005 and Ian in 2022) highlights how building codes established after the 2004 event have significantly reduced wind damage impact.

The research underlines how pro-active mitigation spending and planning can have positive results.

Trevor Maynard, Vice Chair & Director of Systemic Risk at the Cambridge Centre for Risk Studies, commented: "We are grateful for the support of AXA XL in funding this research which clearly shows that FEMA spending on protective infrastructure in advance of disasters reduces damages. In combination with strong building codes communities can be protected."

Andrew MacFarlane, Head of Climate at AXA XL, said: "Adapting our built environment is especially important in the face of a changing climate given the expected impacts of changing frequencies and severities of catastrophic events."

Jonathan Gale, Chief Underwriting Officer, AXA XL Reinsurance commented: "Getting families and businesses back on their feet quickly and in a better state is one thing - reducing or avoiding the loss in advance is another and something the (re) insurance business is uniquely positioned to help with.

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