The risk we face from natural catastrophes (Nat Cat) is on the rise. That's because we live, build and work in locations most at risk from floods, storms, wildfires and extreme weather events. In cities or towns along the coast, on floodplains or near wildland – climate change is fuelling the risk in these areas, making weather-related disasters more likely and more severe.
In its latest sigma report, Swiss Re Institute puts the figure of natural catastrophe losses at USD 137 billion in 2019 alone. Most of them were caused by smaller recurring events linked to extreme weather – a sign that climate change is increasingly visible in our loss numbers. With almost two-thirds of the damage uninsured, millions of people and businesses continue to be exposed to a large protection gap.
This shows the stakes are high and rising.
How can we strengthen our resilience?