In this video interview with The Insurer TV, Guy Carpenter’s Julian Enoizi, Global Head of Public Sector Risk Solution, talks about the community-based parametric program put in place to provide emergency funding to low- and moderate-income households in New York City with payouts in the aftermath of a major flooding event. The ground-breaking program, launched earlier in March 2023 with participation by Guy Carpenter, provides cover at a community level through the Center for NYC Neighborhoods rather than on an individual basis.
“The idea behind it is to sell to a vulnerable community as opposed to trying to sell flood insurance on a one-to-one basis,” he explained. “You can then create resilience among a community of people who otherwise wouldn’t be able to afford to buy flood insurance.”
Julian envisions the program eventually expanding to cover additional perils.
“The scheme is the first of its kind—the first time it's been done. New York City neighborhoods have actually invested in the product. It is something we at Guy Carpenter have been working on with the public sector team in the US for some time now,” he continued. “The idea here is to take this concept and essentially multiply it, taking it to hundreds—if not thousands—of cities across the US. As well as flood, there is no reason why it can’t apply to other kinds of natural perils such as wildfire, earthquake or wind.”
Julian’s work in encouraging resilience extends to both sides of the Atlantic. He also spoke about the efforts of UK’s Business Resilience Task Force and how its impact can expand.
“My hope is that we can demonstrate being resilient at home, as well as being resilient in terms of how we're going to export that,” he explained.
“We do have a fantastic insurance and reinsurance industry, and we do have fantastic engineering expertise in this country. We need to make sure we apply it domestically as well as exporting it internationally.”
He also emphasized public-private partnerships, the benefits of which he touted during his recent Capitol Hill testimony.
“Public-private partnership means a partnership between the two,” Julian explained. “It doesn't mean that one bears the entirety of the risk and the other one gets off scot-free, there has to be an equality in the burden being shared.”
Click image below to watch Julian's interview