when the levee breaks

16
WHEN THE LEVEE BREAKS

Upload: gen-re

Post on 18-Jul-2015

1.201 views

Category:

Economy & Finance


1 download

TRANSCRIPT

Page 1: When The Levee Breaks

WHEN THE LEVEE BREAKS

Page 2: When The Levee Breaks

From Boston to New Orleans to Sacramento and everywhere in between, there are thousands of levees in the United States.

And yet there is a lack of understanding among both the general public and the insurance industry about this exposure.

Page 3: When The Levee Breaks

built the levees?WHO

are the levee systems located?

WHERE

do they protect?WHAT

level of performance can be expected?

WHAT

Page 4: When The Levee Breaks

These are all questions that need to be addressed at both the e-suite and desk level. And some of the answers might surprise you.

Test your levee knowledge with this quick quiz.

Page 5: When The Levee Breaks

Q1 How many miles of levees are estimated to be within the United States?

10,000 miles

50,000 miles

100,000 miles

500,000 miles

a

b

c

d

Page 6: When The Levee Breaks

15%built by the Army Corps of Engineers

Only

100,000affecting tens of

millions of people

M I L E S O F L E V E E S

The correct answer is

A1

100,000 miles

c

Source: National Committee on Levee Safety

Page 7: When The Levee Breaks

21 years

54 years

90 years

Nobody knows

The average age of levees in the U.S. is:

a

b

c

d

Q2

Page 8: When The Levee Breaks

54 years 14,800 miles

Average age of levees in the U.S. Army Corps of Engineers National Levee Database But this accounts for only

The correct answer is

A2

Nobody knows

d

Regular maintenance and periodic upgrades are a serious challenge but needed to ensure that levees retain their level of protection.

100,000M I L E S O F L E V E E S

Source: FEMA

Page 9: When The Levee Breaks

Levees reduce the risk of flooding.

Levees eliminate the risk of flooding.

Which of the following statements is true?

a

b

Q3

Page 10: When The Levee Breaks

The correct answer is

A3

Levees reduce the

risk of flooding.

a

They do not eliminate the risk. In fact, the presence of levees often encourages residential and commercial development in the floodplain. When levees do fail, they fail catastrophically — and the resulting damage may be more significant than if the levees weren’t present.

Page 11: When The Levee Breaks

Acceptable

Minimally acceptable

Unacceptable

The most recent evaluation of levees in the U.S. indicates that most of the levees built by the U.S. Army Corps of Engineers are in what condition?

a

b

c

Q4

Page 12: When The Levee Breaks

8%

69%

22%Acceptable

Minimally acceptable

Unacceptable

The correct answer is

A4

Minimally acceptable

b

Inventory of flood control systems overseen by the federal government have found hundreds of structures at risk of failing — endangering people and property in 37 states. Many, if not most of the U.S. levee systems, may not actually provide a 100-year level of flood protection.

Page 13: When The Levee Breaks

What critical issues affect the ability of the insurance industry to correctly assess its exposure to levee-protected risks?

Not knowing the location of all the levee systems

Not knowing what they protect

Not knowing what level of performance can be expected

All of the above

a

b

c

d

Q5

Page 14: When The Levee Breaks

The correct answer is

A5

All of the above

Location Protection Performance

d

The insurance industry is unaware of many issues critical to the accurate assessment of its exposure to levee-protected risks.

Page 15: When The Levee Breaks

ME

VT

NH

MA

MN

IA

MO

IL IN OH

KY

WI MI

ND

WA

OR

CA

ID

MT

WY

COUT

AZ

NM

TX LAFL

MS AL GA

SC

NC

VA

MD DENJ

RICT

WV

TN

AR

NV NE

SD

KS

OK

NY

PA

Boston

Washington D.C.Cincinnati

Nashville

Memphis

Dallas

Mesa

San Jose

Tuscon

Saettle

Portland

El PasoFort Worth

PhoenixSan Diego

Long Beach

New Orleans

Tampa

Miami

Oklahoma City

Arlington

Colorado SpringFresco

PittsburghColumbus

Indianapolis

St. LouisKansas City

Denver

Albuquergue

Las Vegas

Oakland

Los Angeles AnaheimSanta Ana

Tulsa

HoustonAustin

Wichita

Omaha Toledo

Detroit

Minneapolis

U.S. county with levees

City with more than 300,000 people and containing a levee

counties in the U.S. with levees

of the U.S. population lives in counties with levees

881

50%

you have a levee in your county?

DO

Sources: Levees.org, FEMA

Page 16: When The Levee Breaks

© 2015 General Re Corporation | This presentation is intended to provide background information for our clients and professional staff. It is time sensitive and may need to be revised and updated periodically.

Tim Pappas

Brian W. PlatterThere is a lot to know about levees and Gen Re

can help increase your level of understanding

regarding this exposure.

To learn more, contact

+1 212 341 8021p

+1 415 393 8425p

e [email protected]

in /in/timpappas

in in/brianwplatter

e [email protected] t @timothy_pappas

t @brian_platter

did you do?

HOW