110 Part I - Chapter 7
(Source: GAR global risk model)
Figure 7.4 Probable maximum losses from one-in-250 year earthquakes (top) and cyclonic wind damage (bottom) as a percentage of gross fixed capital formation (SIDS highlighted in bold)
than 60 per cent of their annual capital formation are SIDS. In the case of cyclones, 13 out of 16 countries are SIDS or recognised small island territories. Countries with low levels of investment and high AAL are in the long term less likely to be able to
absorb losses even from more frequent, less severe events. Many SIDS have annual average losses from both earthquakes and cyclonic winds above 1 percent of their annual average capital formation (Figure 7.5). For the Solomon Islands, Tonga and
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