Paul the Insurer 7: Fires in Los Angeles and what Insurance and Risk Management can Teach us

The devastating fires in Los Angeles impressively demonstrated the importance of responsible risk management and a realistic assessment of dangers. In our article, you can find out how insurance companies are dealing with these challenges and why education and innovative approaches such as game-based learning offer crucial added value.

The fires in Los Angeles have taken everything from thousands of people. While politicians and the media often cite climate change as the cause, the insurance industry is facing a more complex challenge. Insurers cancel policies in endangered regions because they have to assess risks precisely. They are not social institutions, but economic players who take a differentiated view of risks. For example, homeowners in less risky areas do not pay for those who live in high-risk zones.

Understanding risks – location selection as the key

Many people opt for attractive residential locations by the water, on hills or near forests without adequately considering the associated risks. Floods, earthquakes and fires are real dangers that are being exacerbated by climate change. Insurance companies are responding by no longer covering certain risks. This development underlines the need to recognize risks at an early stage and to act responsibly.

Education and playful learning as an opportunity

Twenty years ago, creative approaches were already being developed to make risk management understandable, for example through comics and videos for children. Today, digitalization offers new possibilities: A game that simulates real risks can playfully sensitize people of all ages to risk assessment and protection. Those who are well prepared not only protect their property, but also actively shape a secure future.

Insurance is more than just protection, it is an instrument for consciously managing risks and promoting sustainable decisions. With creativity, optimism and an open dialog, we can master the challenges of climate change and risk assessment together. Take the opportunity to find out more and get actively involved, because insurance is a way of shaping the future.

Binci Heeb

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