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In the 10 years since Hurricane Katrina, the world has seen an annual average of 260 major natural disasters, with average annual economic losses of US1 billion, insured losses of US billion, and 76,000 lives lost, according to Aon’s latest annual Global Climate Catastrophe Report.In 2014, 72 percent of global disaster losses were caused by extreme weather events, from hailstorms in Europe, drought to severe winter weather in the U. The figures don’t include any of the many smaller-scale floods, storms, earthquakes and other localized disasters that as a whole can cause even more disruption and loss.
Beyond the headline costs are the potential chain reactions of negative economic impacts to countries around the globe.
With every region at risk of natural disasters, and supply chains and markets increasingly worldwide, it is becoming ever more important for businesses to develop robust disaster plans to reduce the potential impact.
a 90th percentile event reduces per capita incomes by 7.4 percent two decades later, effectively undoing 3.7 years of average development” – The Causal Effect of Environmental Catastrophe on Long-Run Economic Growth, U. Berkeley, 2014“We have seen a staggering escalation in economic losses from disasters, which act as a serious brake on sustainable development, job creation and the availability of funds for poverty reduction programmes, health and education” – Margareta Wahlström, UN Special Representative of the Secretary-General for Disaster Risk Reduction, March 12, 2015“If there is any plausible upside to major catastrophes, is that they often begin a conversation regarding infrastructure improvements and seeking ways to mitigate future risks and losses.
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