Latest data from the Swiss Re Institute, a Zurich-based firm, has shown that China lost over $25 billion as a result of floods in 2021, making it the world’s second worst hit after Europe.
The data showed that Europe endured more than China and recorded over USD 41.8 billion of flood-related losses when extreme rainstorms hit Germany and neighbouring nations in July.
According to the report, natural catastrophes in 2021 alone resulted in a total global economic loss of USD 270 billion and insured losses of USD 111 billion, which is the fourth-highest on sigma records.
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The data showed that while Hurricane Ida was the costliest single natural disaster in 2021, secondary peril events once again accounted for most insured losses from natural catastrophes over the year.
It showed that the flooding in Europe in Julywas the costliest natural disaster on record in the region.
Responding, Head of Catastrophe Perils at Swiss Re, Martin Bertogg, said that “Floods affect nearly a third of the world population, more than any other peril. He added that In 2021 alone, more than 50 severe flood events across the world were witnessed.
“Given the scale of devastation, flood risk deserves the same attention and risk assessment rigour as primary perils such as hurricanes,”he said.
The report further showed that climate change is expected to cause more frequent and more extreme weather events, especially with growing populations, rapid urban development and the accumulation of economic wealth in disaster-prone areas are contributing to the ever-growing catastrophe losses.
In his reaction, Swiss Re’s Group Chief Economist, Jerome Jean Haegeli, said “Growing losses from floods are becoming ever more apparent,”. “Last year we had another wake-up call. There is a growing urgency for action to increase the resilience of societies worldwide”.
Story was adapted from Business Standard.
