2024-03-04 16:42:54
Global economic damage from natural disasters annually amounts to more than $200 billion, according to a review by the Swiss Re Institute, Day.Az reports with reference to Interfax.
Experts from the analytical division of the Swiss reinsurance company analyzed the consequences of four types of natural disasters – floods, tropical cyclones, snowstorms and convective storms – in 36 countries. As noted by the Swiss Re Institute, these phenomena account for the bulk of economic damage from natural disasters.
The $200 billion in annual damage is only a lower estimate because not all natural disasters are counted. In addition, Swiss Re’s analysis only covers material losses.
“As climate change triggers an increase in the intensity of natural events, the potential for damage is likely to increase,” analysts note.
The risks of increased damage from natural disasters are highest in the Philippines and the United States, the review says. In the Philippines, annual losses can reach $12 billion, in the United States – $97 billion.
Countries with insufficient insurance coverage, such as Thailand, China, India and the Philippines, are also exposed to high financial risks.
The first step to reducing economic damage is to take steps to mitigate the potential impacts of natural disasters, including enforcing building codes, strengthening flood protection and discouraging settlement in disaster-prone areas, the review says.
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