What system was created by the insurance industry to address losses from hurricane Andrew and an earthquake?

The system created by the insurance industry in response to significant events such as Hurricane Andrew and certain earthquake occurrences is known as the Building Code Effectiveness Grading Schedule (BCEGS). The BCEGS was established to assess and promote the implementation of building codes that improve a community's resilience to natural disasters. By evaluating the effectiveness of these codes, BCEGS helps insurance companies determine risk levels and adjust premiums accordingly.

The BCEGS encourages jurisdictions to adopt and enforce strong building codes, leading to better construction practices that can withstand extreme weather and seismic events. This proactive approach not only aims to minimize damage and loss but also incentivizes communities to improve their standards, ultimately benefiting both residents and the insurance industry in terms of reduced claims and safer structures.