Global extreme weather losses reach US$129bn for 2016

November 1 2017 by InsuranceAsia News Staff

Losses from extreme weather conditions rose 46% from 2010 to 2016, with economic losses reaching US$129 billion last year, according to research published in The Lancet medical journal.

The report warned that the economic losses will continue to increase due to droughts, storms and floods caused by climate change.

In 2016, a total of 797 extreme events took place, resulting in US$129 billion in overall economic losses.

The report defined losses as damage to physical assets and did not include the economic value of deaths, injury, or disease caused by extreme events.

The Lancet further added that about half of economic losses in high-income countries were insured.

In poor nations, less than 1% of the total economic losses were covered by insurance.

This means the finances of poor countries are disproportionately hard hit as their losses were more than three times higher in 2016 than in 2010 and much greater than in rich nations, in terms of GDP proportions.

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