GAR 2013 Main Report

(Source: UNISDR)

(Source: Swiss Re Hurricane Storm Surge Model)

Box 1.2 ‘Super-storm’ Sandy viii

In October 2012, sub-tropical storm Sandy triggered the evacuation of thousands from the East Coast of the United States of America, leading to the shut-down of national and local transport systems and severely disrupted electricity and communication supplies, with power cuts affecting an estimated 8.5 million homes and businesses (RMS, 2012

RMS (Risk Management Solutions,Inc.). 2012.,Too Early to Calculate Reliable Loss Estimates for Hurricane Sandy., Risk Management Solutions, 21 November 2012., London,UK.. .

). Of the refineries in the East Coast of the United States of America, 70 percent had to be shut down for days; many New York City metro line subways were flooded; and about 15,000 flights were grounded across the Northeast (Time, 2012

Time. 2012.,Hurricane Sandy Estimated to Cost $60 Billion., Time Magazine, Business & Money, 31 October 2012.. .

). Equity trading on all markets was cancelled for two days—the first two-day shutdown since 11 September 2001 (IHS Global Insight, 2012

IHS Global Insight. 2012.,As the clear-up begins, a look at hurricane Sandy’s likely economic toll., Country & Industry Forecasting, 31 October 2012.. .

). As Figure 1.3 shows, the event confirmed results from existing models that showed how New York would be at risk of severe losses from storm surges and flooding.

Soon after the storm passed, it was clear that indirect losses to business activity caused by disruption to public transport and energy supplies were likely to be greater than direct losses (EqCat, 2012; IHS Global Insight, 2012

IHS Global Insight. 2012.,As the clear-up begins, a look at hurricane Sandy’s likely economic toll., Country & Industry Forecasting, 31 October 2012.. .

). The disaster revealed the dependency of businesses on publicly managed or regulated infrastructure.

Figure 1.3 Extent of flooding in New York City due to Super-storm Sandy (top) compared with a hazard map showing areas that could be expected to be flooded due to storm surges (bottom)

Super-stormSandy