Cost of Natural Disasters Now Highest in Recorded History
As the world population races past the bloated 7 billion mark, we are witnessing new records in the expense of damage caused by natural disasters. The United Nations is reporting that $366 billion was lost worldwide last year due to natural disasters like earthquakes, hurricanes, floods and tsunamis. This also sent the insurance industry reeling, with insured losses estimated at roughly $105 billion, the result of catastrophic earthquakes and storms in highly populated areas. This is all happening while many countries prone to earthquakes are significantly underinsured, putting economies at greater risk.
Was 2011 just a bad year, or are we headed for another wallop in the wallet from Mother Nature? With the population ever-expanding and the middle class disappearing, more of the world will be covered with dense, impoverished populations. Even if there are fewer surprises than last year, all it takes is a single, high-magnitude natural disaster and 2012 could rocket into the record books before summer. A recent global report by Global Industry Analysts, Inc. makes the following claim as it highlights the benefits of diversifying one’s portfolio with emergency services assets:
As the occurrences of natural or man-made disasters increase, governments across the world have been forced to work towards improving emergency response systems and services. The need for emergency and other relief services is further expected to increase in future, as factors such as unplanned urbanization, environmental degradation, and constant changes in the global climate are expected to fuel these disasters in the years to come. Growing complications, brought on by rapid changes to the population and environment, have necessitated the development of strategies that are in line with the changing global circumstances. The role played by emergency relief-providing agencies assumes higher significance, owing to the fact that developing countries are largely affected by such high-intensity disasters. The unpredictability of such high-magnitude calamities makes it impossible for average households to cope with the disasters, thereby necessitating the provision of emergency relief services.
So… to recap, buy quake insurance, or better yet, move into the country. If your house is still worth anything, don’t get cocky, there’s always a new season of extraordinarily expensive natural disasters to contend with.
Zac Shaw
Zac Shaw is an end times analyst in New York. When not weighing in on the disastrous news of the day, he is one half of apocalyptic indie-core duo Dead Unicorn and runs the Music for End Times record label with bandmate Paul Heath.
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