UN warns of losses, disasters could cost Asia-Pacific region USD 160 bn per year by 2030
The low insurance coverage has persisted in the region even though it has suffered nearly USD 1.3 trillion in losses over the last 50 years.
The need is all the more pressing given that only eight percent of region’s losses are insured, said the UN Economic and Social Commission for Asia and the Pacific.
“The time for establishing solutions to these complex emerging challenges is now,” underlined Shamshad Akhtar, the Executive Secretary of ESCAP, speaking at an event on financing for disaster risk reduction in Asia-Pacific at the UN Headquarters, in New York.
The low insurance coverage has persisted in the region even though it has suffered nearly USD 1.3 trillion in losses over the last 50 years.
The result is that individuals, businesses and Governments are left to bear the staggering costs of natural calamities. And with extreme weather events increasing as the region’s cities become more crowded, the gap could widen.
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In her remarks, Ms Akhtar outlined the opportunities offered by recent innovations such as catastrophe risk modelling, parametric insurance, a mix of traditional and global financial reinsurance, and concessional insurance.
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Speaking alongside Ms Akhtar, Mami Mizutori, Head of the UN Office for Disaster Risk Reduction (UNISDR), highlighted the importance of both disaster risk financing and resources to reduce disaster risk to ensure resilient and sustainable development.
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