(Joel Kurtzman (l) and Thomas Wilson)

The Next Katrina: Who Will Pay?

Speaker:
Thomas Wilson, President and COO, Allstate Corp. and Allstate Insurance Co.

Moderator:
Joel Kurtzman, Senior Fellow, Milken Institute; Senior Advisor, Knowledge Universe

One of the most interesting discussions that comes up in regards to natural disasters--and who pays for the recovery and clean-up of such events--is the role media plays in covering disasters such as Katrina. Wilson is very critical of the media, noting that while the television shows are all ready to show an anchor standing near swaying palm trees, what kind of programming are they doing to actually instruct viewers before an event? For instance, what aren't they doing stories on flood insurance, or the risks of flooding?

It's likely that Hurricane Katrina, which was estimated to cost about $200 billion, according to Wilson, provided a ratings boost. But are media being irresponsible in their lack of coverage of natural disasters? 

It's true that networks love natural disasters. (Plus, the terminology used by the news is always fascinating. Writers for news programs always use dramatic words like "pummel" or "ravaged." Really, it's just Mother Nature doing her thing, without any intention of ravaging).

But would anyone watch shows that talked about natural disasters before they happened? It's unlikely, given our bury-our-head-in-the-sand mentality.

Besides adding more news programming, Wilson would also like to see some other things changed, for instance, he would like to see stronger homes being built. When it comes to disasters, obviously there is an element of having to be responsible for oneself. An audience member brings this up, noting that perhaps we shouldn't let people build homes in areas known for mudslides, for instance. The audience member has a point, since obviously it costs manpower and money to come help homeowners when their Malibu mansion slides down the hill. Wilson's response: "People should be able to build where they want to, as long as they understand the risks."