Charlotte Students Present Catastrophic Risk Research At International Seminar
Following Hurricane Helene, injured and sick people who were soaked with gasoline, chemicals and other contaminants from polluted floodwaters streamed through the doors at Mission Hospital in Asheville.
Left high-and-dry from crippling storm damage to Asheville’s water system, hospital staff dealt with the disaster without a reliable supply of clean water. In the early days, staff reported filling trash cans with water to sluice contaminated clothing and bodies. Later, with city system repairs taking months, the hospital’s parent company brought in tanker trucks and bottles of water, mobile units including kitchens, bathrooms, showers and laundry, and handwashing stations.
Meanwhile, about 45 miles west of Asheville, the walls of rain and devastating storm surge swamped a Baxter manufacturing site in North Cove that produces roughly 60% of the IV bags used in the United States. The storm washed out the only road and bridge access to the facility, while mud and debris filled the buildings and contaminated its equipment. The complicated situation triggered a national shortage of IV fluids, disrupting an essential supply chain.
Catastrophic risk research
The immediate response and recovery processes of these and other Western North Carolina organizations — and the widespread impact on their employees, clients, customers and broader communities — offer invaluable lessons in catastrophic risk.
Last fall, Belk College of Business undergraduate students in Associate Professor of Risk Management and Insurance Faith Neale’s catastrophic risk class analyzed these and other real-time catastrophes, presenting their research findings at an international seminar on catastrophe risk management.
“My research explored the effects of catastrophes on the healthcare system — honing in on physical infrastructure and supply chain disruptions,” said Eunice Okyere, a student in Neale’s class. “To further add context to my findings, I presented a case study on Hurricane Helene and the direct impacts on healthcare systems in Western North Carolina.”
Okyere and fellow Charlotte students Gabriella Crentsil and Isaac Nechvatal ‘24 traveled to Munich, Germany with their professor to present their research. They joined students from Florida State University, Ludwig-Maximilians-Universität München, and Hochschule München University of Applied Sciences to consider disaster preparedness, cybercrime, climate change, insurance and reinsurance and alternative risk transfer methods. They were hosted by The Munich Risk and Insurance Center.
The Charlotte scholars received universally high marks for their work. “Our students did an amazing job presenting their catastrophic risk research,” Neale said. “We are very appreciative and thank our industry partners for supporting our students so they can supplement their education with these enriching experiences.”
Insightful experience
The class was Okyere’s first time studying abroad and first time conducting in-depth research. “I couldn’t have asked for a better experiential learning experience,” she said. “From presenting and diving into deep discussions to hearing other students share their research about various topics, from cyber to terrorism risk, it has truly been an insightful and enriching pursuit. This experience further solidified my passion for pursuing a career in risk management.”
Okyere and Crentsil melded their research for the presentation in Munich, with each focusing on different aspects of hurricanes, particularly Helene, in the project, “Beyond the Catastrophes.” Okyere considered “Healthcare System Strains in the U.S,” and Crentsil dug into “Evolution of Catastrophic Risk.”
“My contribution addressed two research questions,” Crentsil said. “What are the patterns of hurricane frequency and severity in the Southeastern U.S., and how do they impact socially vulnerable communities? And, what is the disparity between total economic losses and insured losses, and what policy measures could close this gap?”
She used resources from the Federal Emergency Management Agency, the National Oceanic and Atmospheric Administration, CoreLogic® and Swiss Re. “I found that rising sea levels and ocean warming significantly increase storm strength,” Crentsil said. “Additionally, flood losses exacerbate the protection gap since most standard home insurance policies exclude flood coverage, and fewer than 3% of homeowners have flood insurance.”
Nechvatal, who graduated in December and is now an associate broker with Aon, analyzed the role of catastrophe bonds in improving economic resiliency in developing countries, as they deal with catastrophic events. Using case studies from Jamaica and the Philippines, his research examined how these bonds can provide financial relief and support faster recovery.
Expanded research
In an interesting twist, working with the undergraduate class has influenced Neale’s ongoing research.
“The research by the students helped me realize the impact of catastrophes on healthcare systems that can affect medical malpractice and health insurers,” Neale said. “The data pulled and insights gained from a project that I worked on at Florida State University last spring, Health Insurance Information Technology and Medical Malpractice, can be used to examine the impact of catastrophes on health outcomes and related health and medical malpractice insurance. This is an area not previously researched and could have a significant impact.”
Key people at Charlotte who assisted the class include Social Sciences & Business Librarian Angel Truesdale with J. Murrey Atkins Library; graduate assistant Brandon Turner; Belk College Associate Dean for Undergraduate Programs Natasha Randle and Director of Belk Scholars and Business Honors Programs Jackie Robinson.