These two countries among 36 will be the hardest hit by climate change, says one of the world's largest insurance companies; do you reside in one of these nations?
Swiss Re Institute report «Changing climates: the heat is (still) on», the Philippines and the US are the most economically vulnerable among 36 countries analyzed. This vulnerability is driven by the increasing severity of weather-related catastrophes like floods and tropical cyclones.
Philippines and US Lead Economic Losses Due to Weather Perils
The Philippines faces annual economic losses equivalent to 3% of its GDP, the highest among the countries studied. High exposure to tropical cyclones and floods makes it especially vulnerable to hazard intensification. Meanwhile, the US ranks second, incurring $97 billion in absolute economic losses annually—0.38% of its GDP—primarily due to tropical cyclones and severe thunderstorms.
The Role of the Insurance Industry in Risk Mitigation
Swiss Re’s Group Chief Economist Jérôme Jean Haegeli emphasizes the need for adaptation to reduce losses. The insurance industry is pivotal in enabling investments in climate adaptation through risk-sharing and underwriting climate-resilient projects. Accurate pricing of climate risks can drive necessary investments, ensuring economic resilience against future hazards.
Fast-Growing Economies Face Heightened Risks
Fast-growing Asian economies, including Thailand, China, India, and the Philippines, are particularly exposed due to their sizeable insurance protection gaps and slow implementation of adaptation measures. The report highlights that countries failing to match loss mitigation efforts with economic growth remain financially
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