Catastrophes cost $520bn annually
Wednesday, 11 16 2016, Category: Insurance and Reinsurance, Country: World
According to a new report from the World Bank and the Global Facility for Disaster Reduction and Recovery (GFDRR), natural catastrophes push some 26 million people into poverty and cost a staggering $520 billion in losses, each year, underlining the importance of disaster risk finance and improved disaster resilience.
The report, which examines 117 countries, states that the impact that natural catastrophe events have on well-being each year, measured in terms of lost consumption, is greater than asset losses, and is actually equivalent to approximately $520 billion a year.
It’s yet another statistic that highlights the importance of integrating disaster risk financing and risk transfer, as well as insurance, reinsurance and capital markets capacity, into the disaster resilience plans of countries around the world.