Delos, ROAR Partner to Tackle $110B US Disaster Protection Gap
Event summary
- Delos Insurance Solutions and ROAR Partners have formed a strategic collaboration focused on disaster risk mitigation and insurance solutions.
- The partnership aims to address a $110 billion protection gap in the US, exacerbated by the 2025 Los Angeles wildfires, which resulted in $150-$275 billion in economic losses.
- The 'Future Proofing America Framework' will focus on identifying low-risk development zones, forming wildfire reduction alliances, and providing investment and insurance solutions.
- Delos will leverage geospatial analytics to identify 'islands of safety,' while ROAR Partners will conduct risk assessments and facilitate Community Mutual Risk Pools.
The big picture
The collaboration highlights the growing recognition of systemic risk from climate-related disasters and the inadequacy of traditional insurance models. The $110 billion protection gap in California underscores a broader trend of insurance market retrenchment in high-risk areas, creating a need for innovative solutions that combine risk mitigation, investment, and insurance. The use of specialized financing districts signals a shift towards public-private partnerships to address disaster resilience, potentially reshaping local government finance.
What we're watching
- Regulatory Headwinds
- The success of the Community Mutual Risk Pools will depend on navigating evolving regulatory frameworks and securing necessary approvals across multiple jurisdictions.
- Execution Risk
- Delos and ROAR must effectively coordinate their efforts and integrate disparate data streams to accurately identify low-risk zones and deploy mitigation strategies.
- Market Adoption
- The pace at which the 'Future Proofing America Framework' gains traction will be influenced by the willingness of investors, developers, and local governments to adopt new financing structures and risk mitigation techniques.
Related topics