As hurricane season looms, many communities face a critical vulnerability

Why it's crucial to prepare for disaster recovery now

For state and local officials and emergency managers, the weather outlook for the remainder of 2024 is sobering — NOAA's forecast for the 2024 Atlantic hurricane season anticipates an 85% likelihood of an above-normal season. Of 25 named storms, more than a dozen could become hurricanes.  

Every year, millions of people in the U.S. are impacted by disasters. As of June, there have already been 11 confirmed weather-related disaster events with losses exceeding $1 billion.  

And no one is more committed to protecting and restoring communities than the civic leaders, emergency managers and first responders who risk both life and limb for others following catastrophes. Increasingly, however, weather and environmental events are colliding with outdated payment systems and leaving agencies struggling to deliver relief quickly and securely to constituents in need. Slow processes and outdated technology leave many crisis survivors waiting days or weeks to receive relief payments, often disproportionately impacting marginalized communities, rural communities, people of color, and lower-income populations. 

The impact of these events on local economies can be devastating, with businesses shuttered, homes destroyed, and entire communities left in disarray. Immediate financial relief is not just a matter of convenience; it's a lifeline for those grappling with the aftermath. 

Following a disaster, the quality of relief is directly proportional to the speed and ease in which it can be delivered.  

The current state of disaster relief payments 

Currently, disaster relief payments often rely on traditional methods such as paper checks and bank transfers. These modes of distribution are notoriously slow and inefficient. Displaced survivors may struggle to receive their aid if they no longer have access to their usual mail delivery locations. Additionally, the bureaucratic red tape and verification processes can delay the disbursement of funds, leaving victims in a prolonged state of uncertainty and vulnerability. 

For instance, during Hurricane Harvey in 2017, many victims reported waiting weeks, if not months or years, to receive their promised financial assistance. This delay can mean the difference between securing immediate shelter and food or facing prolonged periods of hardship. 

The case for immediate payments 

The adoption of immediate payment systems can transform the disaster relief process. Unlike traditional methods, digital payments can be processed within minutes, ensuring that funds reach those in need promptly. This speed is crucial in the immediate aftermath of a disaster when access to basic necessities like food, shelter, and medical care is most critical. 

Faster payments can also provide a sense of financial stability to victims, alleviating some of the mental stress associated with the uncertainty of awaiting aid. The psychological benefits of financial security during crisis situations cannot be overstated. Knowing that help is on the way can significantly reduce anxiety and improve the overall mental health of disaster victims. 

Key considerations for adopting immediate payments now  

For leaders, knowing where to start can be complicated. Our eBook, Pathways to fast and secure digital relief payments after natural disasters and other crises, is designed to give these audiences a roadmap to adoption. Among the recommendations to guide the process:  

1. Focus on fast, electronic payments: Move toward electronic first. The U.S. Treasury, for example, is targeting to disburse 99% of payments electronically by 2030.  
2. Modernize processes: Streamline disparate systems and processes into one consolidated view while centralizing data. Automated systems can help eliminate manual data entry and manipulation, allowing teams to focus on higher priorities.  
3. Prevent fraud through secure protocols: Leverage tokenized payments to eliminate the need to store and collect sensitive electronic payment information. 
4. Develop and enhance payment equity: A complete view of the crisis event and its applicants helps ensure that all eligible applicants – regardless of location and socio-economic status – receive benefits. 

Solutions for immediate payments 

Last year, our teams at Conduent released Rapid Assistance Solution. This digital payment platform provides swift distribution of funds to those affected by disasters, bypassing many of the delays associated with traditional methods. By leveraging digital payments, Rapid Assistance Solution ensures that victims can access their funds quickly and securely. Our payment solutions are also field tested. During the COVID-19 pandemic, for example, our systems distributed stimulus payments swiftly, demonstrating the feasibility and efficiency of such methods. 

For the public, raising awareness about the importance of immediate disaster relief payments is crucial. Advocating for the adoption of faster payment methods can put pressure on local governments and agencies to prioritize this issue. Additionally, individuals can support organizations and initiatives that are working towards improving disaster relief processes. 

Voluntary Organizations Active in Disasters (VOAD) is a coalition of groups specializing in disaster response and survivor support. Their website, nvoad.org, lists member organizations and state chapters. VOAD's focus on disaster response and recovery underscores its dedication to aiding survivors during crises. Similarly, the American Red Cross's Annual Disaster Giving Program (ADGP) and Disaster Responder Program provide valuable support to communities in time of need.

As we brace for another hurricane season, the need for rapid financial assistance in the wake of disasters is more urgent than ever. By embracing immediate payment solutions like Conduent’s Rapid Assistance Solution, we can ensure that victims of weather-related disasters receive the swift relief they desperately need, paving the way for faster recovery and resilience in the face of future crises.