The Swiss Re Institute has issued a warning about the increasing economic losses caused by climate change. According to their research, weather-related natural catastrophes result in an estimated global economic loss of $200 billion annually.
Most Economically Exposed Countries
Out of 36 countries analyzed, the United States and the Philippines are identified as the most economically exposed nations. The U.S. faces annual economic losses of $97 billion, while the Philippines faces losses of $12 billion due to severe weather events.
Financial Risks for Countries
Countries such as Thailand, China, India, and the Philippines, which have significant insurance protection gaps and inadequate adaptation measures, are at a higher risk of facing financial challenges due to climate change, as highlighted by the institute.
Importance of Pricing Climate Change Risks
Jerome Jean Haegeli, the Swiss Re Group Chief Economist, emphasized that accurately pricing climate change risks is crucial for ensuring necessary investments are made to mitigate these challenges.
Main Driver of Economic Losses
Tropical cyclones are identified as the main driver of major weather-related economic losses in the United States, East, and Southeast Asia according to Swiss Re.