Losses due to natural disasters increasing

Only between 2019 and 2021, there were over 560 natural disasters worldwide, resulting in combined losses totaling $620 billion. These numbers are growing larger as the frequency of heatwaves, droughts, and intense rainfall events increases with climate change, leading to flash floods, inundations, landslides, and other catastrophic events. Their consequences encompass not only fatalities and destroyed infrastructure but also economic losses, as indicated by a new report prepared by the Polish Chamber of Insurance and consulting firm EY. It reveals that in a realistic scenario assuming a global temperature rise of 2 degrees Celsius by 2050, the Polish GDP could lose nearly 8 percent.

“Advancing climate changes mean that natural disasters will occur more frequently, and their impacts will become more costly. We estimate that compensation amounts will consequently be higher, and we will be paying them out more frequently. This necessitates our preparation, both financially and substantively. Experts are already working to identify these risks, which translates into actuarial calculations, reinsurance agreements, and so on,” Rafał Mańkowski, an expert from the Polish Chamber of Insurance, said.

(Newseria)