This is the fourth and final installment of a four-part blog series on Zurich’s North American Government & Industry Affairs 2017 Key Priorities. Laura Favinger, SVP Zurich North American Government & Industry Affairs, outlines our four key priorities in this video.
When was the last time you saw or experienced a nuisance so annoying or dangerous you said, “there oughta be a law?” How about when you sat in gridlock traffic for so long you noticed your otherwise pleasant demeanor and patience evaporated? Or you hit a pothole so big you thought you might have lost a fender? Industry sources estimate that people take 188 million trips per day over structurally deficient bridges; 6 billion gallons of water are lost every day to leaking pipes; and 3.5 million people become sick each year from contact with contaminated water.* Believe it or not, the funding of U.S. infrastructure is a mixture of local, state and federal legislation that allows those projects to become tangible.
As a leading insurer of construction projects in the U.S., Zurich’s customers play a vital role in repairing those roads, bridges and infrastructure that serve as the circulatory system of the American economy. Zurich helps provide insurance coverage for those risks to get the projects built. We have a long and proud history of insuring iconic infrastructure projects like the building of Madison Square Garden, Soldier Field (& the renovations), the Hoover dam and Golden Gate bridge. Our company has grown over the last 100 years with the country.
Over the past several decades, public investment in infrastructure as a percentage of GDP has declined. Annual infrastructure investment by federal, state, and local governments has fallen by almost half since the 1960s (when it was nearly 3 percent of GDP) to today, when it is about 1.6 percent of GDP.*
According to the American Society of Civil Engineers (ASCE), not addressing the infrastructure crisis will cost households $3,400 year from now through 2025. This is a hidden tax on businesses and families that will have serious consequences for our economy. Research studies estimate that if this investment gap is not addressed throughout the nation’s infrastructure sectors by 2025, the economy is expected to lose almost $4 trillion in GDP, resulting in a loss of 2.5 million jobs in 2025.*
Zurich is a member of the Bipartisan Policy Center (BPC) Coalition to Modernize American Infrastructure, a broad group of think-tanks, corporations and other interest groups committed to the mission of addressing our crumbling infrastructure. Recently, the BPC Coalition has taken to Capitol Hill to remind lawmakers of the importance of addressing this ever present issue. BPC is are working to forge a deal that is a combination of funding and private incentives.
For more on Infrastructure including Zurich’s white papers, blog posts and infographics, check out our Knowledge Hub on Infrastructure HERE.
*Information provided by Bipartisan Policy Center (BPC) Coalition to Modernize American Infrastructure
The information in this publication was compiled from sources believed to be reliable for informational purposes only. Any and all information contained herein is not intended to constitute advice (particularly not legal advice). Accordingly, persons requiring advice should consult independent advisors when developing programs and policies. We do not guarantee the accuracy of this information or any results and further assume no liability in connection with this publication. The subject matter of this publication is not tied to any specific insurance product nor will adopting these policies and procedures ensure coverage under any insurance policy. Insurance coverages underwritten by individual member companies of Zurich in North America, including Zurich American Insurance Company. Certain coverages not available in all states. Some coverages may be written on a nonadmitted basis through licensed surplus lines brokers. Risk engineering services are provided by The Zurich Services Corporation.
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