No-one knows when disaster will strike, but a well-developed mitigation and response plan can showcase your strength and crisis management skills, especially in emerging markets, as Keith Moskowitz explained to Intelligent Insurer.
The numbers are staggering: at least $60 billion in total damages from Hurricane Sandy, $120 billion for Hurricane Katrina, $125 billion for the Great Sichuan Earthquake, $100 million in flood damage in Colorado, $3 billion for the Firestone tyres recall, $170 million for the Sony PlayStation cyber attack.
Over the last three decades, the economic cost of natural catastrophes alone more than quadrupled—from an inflation adjusted average of $25 billion in the 1980s, to $95 billion in the 1990s and $130 billion in the 2000s.
And that is just for natural catastrophes. Risk can come from all sides. Think terrorism and mass violence. Think climate change and cyber crime. Think another global financial meltdown, and the implications of resulting supply chain disruptions from catastrophes in a global economy. In 2012 alone, manmade and natural disasters accounted for $140 billion in losses worldwide.
Intelligent Insurer, Keith Moskowitz, Emerging Markets, Insurance, Catastrophe Management