Strategic Intelligence: Natural Disaster Risk

Strategic Intelligence: Natural Disaster Risk

Summary

Climate change and urban development are increasing the risk of natural disasters. 2024 was the third most costly for natural disasters in the last 45 years, according to Munich Re.

Key Highlights

• As shown by the chart on the right, global temperature anomalies over land and ocean have been increasing since 1860. Rising temperatures are driving climate change, which is increasing the intensity and frequency of extreme weather events.
• The most recent Intergovernmental Panel on Climate Change (IPCC) report from 2023 indicates that disasters fuelled by climate change have become more extreme more quickly than previously predicted. As weather patterns shift, places that did not experience certain hazards now have the weather systems to support them.

• This report covers wildfires, tropical storms, flooding and droughts, and earthquakes. Gallagher Re, the reinsurance company, calculated that these four hazards had been the four most costly hazards between 2014 and 2024.
• Other hazards not covered but which are also damaging to populations and industrial activity are extreme cold spells, volcanic eruptions, landslides, and extreme heat.

• Natural disasters can be devastating for businesses. This report looks at the four main types of natural disasters, highlights their potential impacts, and assess how emerging technologies can be used to monitor and mitigate risk.