Unable to Obtain Insurance, NY MTA Finds Innovative Way to Prepare for Future Storms

After incurring $4.8 billion in repair costs from superstorm Sandy, NY's MTA had a hard time buying insurance. It's utilizing an innovative tool - called a catastrophe bond - to help prepare financially for a damaging storm surge in the near future.

"The Metropolitan Transportation Authority has sold the first bond designed to protect specifically against storm surges, assembling a $200 million protection plan against the greatest source of damage from superstorm Sandy," report Katy Burne and Ted Mann.

"The MTA's traditional avenues for insurance coverage dried up after Sandy, with damage from the storm making it 'exceedingly difficult for [it] to obtain insurance,' MTA Chairman Thomas Prendergast said in a statement."

"The use of the new financing tool—known as a catastrophe bond—is one of the clearest signs yet of how Sandy has driven up the cost of running the MTA and how its leaders are moving to adapt to the risk of future storms." 

Full Story: MTA Sells Storm Bond

Comments

building block set

NEW! Build the world you want to see

Irresistible block set for adults when placed on a coffee table or desk, and great fun for kids.
$25
Red necktie with map of Boston

For dads and grads: tie one on to celebrate your city!

Choose from over 20 styles imprinted with detailed city or transit maps.
$44.95
Wood necklace with city map

City Necklaces

These sweet pendants are engraved on a cedar charm with a mini map of selected cities. The perfect gift for friends and family or yourself!
$28.00
AICP CTP Storefont Display

The first online AICP* CTP exam prep class

Are you ready to take the AICP* Certified Transportation Planner exam?
Priced at $245 for May exam!