Total economic losses due to natural disasters totalled US$72 billion (SG$97.7 billion) in 2021, according to Aon’s 2021 Weather, Climate and Catastrophe Insight report.
Following three years of economic losses exceeding US$100 billion, Asia’s figure dropped to US$72 billion in 2021. Insurance covered only 9% of economic losses in Asia, compared to 38% of the $343 billion in global losses.
“Clearly there is both a protection and innovation gap when it comes to climate risk,” said Owen Belman, head of Asia at Aon. “As catastrophic events increase in severity, the way that we assess and ultimately prepare for these risks cannot depend solely on historical data. We need to look to artificial intelligence and predictive models that are constantly learning and evolving to map the volatility of a changing climate and its interaction with a complex and ever-changing urban environment. With scalable solutions, organisations can make better decisions that make them more resilient as they continue to face interconnected and increasingly volatile risks.”
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