Plan to add NYC flood barriers has possibility of insurer investment

12/17/2013 | (free content)

Representatives of some major insurance companies participated in a meeting to discuss building coastal barriers to protect New York City from storm surge while reducing insurers' exposure to damages caused by rising sea levels, Evan Lehmann writes. Meeting organizers suggested fees collected from property owners and governments protected by the barriers would provide a return on investment to the project's financial backers, which could include insurance companies, this article notes. Eli Lehrer of the R Street Institute said the concept poses challenges because "you don't know when a flood that you could avoid by building this infrastructure would happen. And there's probably no amount of infrastructure that could compensate for the worst-case scenario."

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