Constant rebuilding could render countries uninsurable

Experts recommend constructing resilient infrastructure
Constant rebuilding could render countries uninsurable
CONSTRUCTION & ENGINEERING
By Terry Gangcuangco
19 Oct 2017
They say “do it right the first time”. The construction sector better take heed if it doesn’t want constant rebuilding to render nations uninsurable against disasters.

“The expense of a constant construct, reconstruct, reconstruct, frankly, no country can afford,” said former United Nations’ climate chief Christiana Figueres, as quoted by Reuters. “Because we know we will be getting more of these effects, we cannot let ourselves get to a scenario where we are systemically uninsurable.”

Amid global warming, experts recommend building new, resilient infrastructure on safe land and with low carbon emissions. The goal is to withstand catastrophes and avoid the cycle of rebuilding.

According to the report, it is estimated that more infrastructure – with an annual cost of US$5 trillion – will be built in the next two decades, compared to what was constructed in the past 2,000 years.

“If you have a bridge across the River Ganges and you stop it for a day... the economic impact is huge,” noted Kamal Kishore of India’s National Disaster Management Authority. “We really have to make the case of life-cycle costs and benefits, not just the upfront costs of infrastructure.”


Related stories:
QBE: 2017 could be costliest year in history
How construction can rebuild public trust following Grenfell disaster

 
Free newsletter

We'll keep you up-to-date with the latest breaking news, cutting edge opinion, and expert analysis affecting both your business and the industry as whole.

Free newsletter

Our daily newsletter is FREE and keeps you up - to - date with the world of Insurance. Please complete the form below and click on subscribe for daily newsletters from IB UK.