The world's costliest flood: the 2011 Thailand flood, 10 years on
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Ten years on, the unprecedented 2011 Thailand flood is still one of the country's worst humanitarian disasters and the most expensive flood loss on record for the global insurance industry.
The key takeaways from this Economic insights are:
- The 2011 Thailand flood is still the costliest flood event on record for the global insurance industry.
- Thailand's rapid urbanisation of areas around large river systems exposed it to significant flood risk.
- A combination of weather events and flood mismanagement resulted in USD 15 billion of insured losses in 2011 (USD 18 billion today).
- High accumulation of property risk, due to the success of Thailand's manufacturing sector, resulted in insured losses that exceeded all expectations.
- As climate change increases extreme rainfall events, adaptive measures such as flood-resilient urban infrastructure will be crucial to manage flood risk.