For years now, we've been seeing a dramatic rise in economic losses caused by natural catastrophes.
Since 1980, the global economic fallout from floods, earthquakes, storms and other disasters has gone up from an average cost of USD 25 billion per year in the 1980s to an annual average of USD 130 billion between 2000 and 2010. That's an increase of over 500% in 30 years!
Don't expect a reversal of this trajectory any time soon as urban populations continue to grow and countries develop. The trend is nowhere more visible than in the world's high-growth markets which are accumulating new wealth and rapidly expanding their economies.
Climate change is an aggravating factor because it increases the threat of more weather extremes and rising sea levels.
Without investing in disaster preparedness, countries may be leaving their people and infrastructure exposed to a dangerous level of risk. And it may also mean that certain risks will become uninsurable in the future.
This is why disaster preparedness and climate adaptation http://www.swissre.com/rethinking/climate_and_natural_disaster_risk/Managing_climate_and_natural_disaster_risk.html go hand in hand when it comes to protecting local populations and risk-proofing their economies.
Category: Climate/natural disasters: Climate change, Floods/storms, Resilience