Flooding Costs October 1, 2012 : 10:32 AM

A new report from Swiss Re finds that the financial impact of flooding has doubled in the past decade – climate is a major driver:

“Flood losses are increasing at an alarming rate while the insurability of floods provides unique challenges for the industry, according Swiss Re's latest report, "Flood – an underestimated risk: Inspect, inform, insure".” …

“No other natural catastrophe impacts as many people as flooding with an estimated 500 million people affected every year. Insured flood losses are also increasing significantly; 1970's annual claims were between USD 1–2 billion, whereas insured flood losses amounted to USD 15 billion in 2011. Recent flood events in Thailand, Australia and the Philippines have shown that floods are now rivalling earthquakes and hurricanes in terms of economic losses.” …

“Population growth, demographic change, a higher concentration of assets in exposed areas, greater vulnerability of insured objects and climate change are all contributing to the increasing costs of flood damage. The rising costs of floods are creating challenges for the insurance industry and the economic viability of flood insurance is currently an issue under scrutiny.”