A recent study by students from Johns Hopkins University has proposed that the spread of invasive species should be considered an insurance peril. The study found that efforts to manage these harmful organisms cost about $1.4trn globally.
The report, titled “Building Resilience to the Economic Threat of Invasive Species”, explored the role of insurance in addressing the growing threat of pests and invasive species, not just to businesses but also to public health and the environment.
The study found that despite significant threats, many people remain unaware of the scale and breadth of the issue, though there is a growing demand for methods to mitigate damages to communities and businesses.
According to the study, insurance is one promising strategy for boosting the risk management and financial preparedness of stakeholders against the threat of invasive species – a sentiment echoed by Swiss Re, Reinsurance News reported.
“Insurance can help understand the impacts of these invasive species in terms of understanding risk, pricing risk, improving preparedness, and triggering rapid response mechanisms,” said Alex Kaplan, senior vice president and head of global partnerships North America at Swiss Re.
