Here we bring together recent GC Capital Ideas posts covering the flood peril, as risks increase due to climate change and increasing population growth in flood-prone areas. Sunk Costs: The Socioeconomic Impacts of Flooding: Flooding is the most pervasive natural disaster in the world. Since 1980, floods have killed over 250,000 people and caused over USD 1 trillion in damage, accounting for about 40 percent of natural catastrophe losses. Risks are increasing due to climate change and the growth of populations and economic activity in flood-prone areas. This has implications for prosperity and economic security, as well as societal wellbeing because flooding disproportionately affects the poorest and most marginalized communities.
Community-Based Catastrophe Insurance: Closing the Gap for Disaster Protection: A new report from Guy Carpenter, Marsh & McLennan Advantage, and the Wharton Risk Management and Decision Processes Center, Community-Based Catastrophe Insurance: A Model for Closing the Disaster Protection Gap, sets out an innovative model to deliver insurance and help communities close the disaster protection gap.
Guy Carpenter Launches Probabilistic Vietnam Flood Model: Guy Carpenter today announced the launch of its new Vietnam Flood Model. The fully probabilistic model provides countrywide coverage and enables insurers to assess their exposure to floods, which affect 70 percent of the country’s population.