Natural disasters will cause $ 270 billion in damage worldwide by 2021

Natural disasters will cause $ 270 billion in damage worldwide by 2021. Of that, $ 111 billion is under insurance. More than 50 severe floods have occurred, with economic losses of more than $ 80 billion alone. In Europe, the July floods caused an unprecedented natural disaster on the continent.

As a result, the damage caused by natural disasters was significantly higher last year than in 2020, which was still $ 203 billion. This is clear from the report Natural Disasters in 2021: Flood Gates Open The Swiss Institute is part of the Swiss Reinsurer Swiss Re Group. $ 270 billion is not a complete exodus. In the three years from 1970, the amount was even higher.

In total, 306 catastrophic events have been classified as natural disasters. Hurricane Ida, which wreaked havoc in the United States, is generally the most costly disaster. Insured damage alone is estimated at $ 30 to $ 32 billion. Tropical cyclones account for 33 percent of total damage worldwide. After a while, big flooding with 31 percent occurs.

The most expensive natural disaster in Europe
An unpleasant record has been broken in Europe. The Swiss Institute says the July 2021 floods, which hit Belgium, Germany and Limburg, were the deadliest natural disaster in the world. The economic losses are about $ 40 billion, of which a third is insured. In the previous ten years, floods in Europe caused an average of $ 10 billion in damage.

Floods are one of the most common natural disasters in the world. Last year there were more than 50 severe floods, including in Australia, China and the United States. The number of floods in the last decade is more than three times the number of tropical cyclones. Last year, one-third of the approximately 8,200 deaths from natural disasters were caused by flash floods.

Losses caused by floods
Jerome Jean Heckley, chief economist at the Swiss Group, said the damage caused by the floods was becoming increasingly apparent. “Last year we received another call for awareness. There is always a growing urgency for communities around the world to take action.

According to Hegelie, insurers and reinsurers, along with the public sector, can mitigate growth in high-risk areas and invest in safety measures such as green infrastructure. “Places to insure assets while improving growth opportunities.”

The Swiss Institute Institute report generally points to the impact of climate change. This leads to frequent and intense weather events. In addition, population growth, rapid urban growth, and the accumulation of economic wealth in disaster-prone areas all contribute to economic losses caused by natural disasters.

More info
Report by the Swiss Re