According to a report by insurance company Munich Re (Germany) published on January 7, natural disasters caused 210 billion USD in damage worldwide in 2020.
The total damage caused by natural disasters in the US amounted to 95 billion USD, almost double the damage in 2019. The country has suffered a record number of storms across the Atlantic Ocean as well as record massive wildfires in California in 2020, the second hottest year on record.
Climate change is causing more severe and frequent disasters such as storms, heat waves and wildfires, and economic losses are increasing as more and more buildings are being built in areas affected by natural disasters.
Record big wildfire in California. America in 2020. (Photo: AP)
Mr. Torsten Jeworrek, a member of the Munich Re's Board of Directors, said: "Disaster damage in 2020 is significantly higher than in 2019. Climate change will play an increasing role in all these disasters. Therefore, it is time to act".
According to the report, a major problem posed is the lack of natural disaster insurance in developing countries. Total damage caused by natural disasters in Asia amounted to 67 billion USD, while the sum insured was only 3 billion USD.
Storms cause flooding in Mandaluyong, east of Manila, Philippines. (Photo: AP)
In 2020, floods took place across China, caused damage up to 17 billion USD, of which only 2% of this figure were insured. Storm Amphan hit India and Bangladesh in May, caused 14 billion USD in damages, very few of which were insured, the report said.
This figure rises significantly compared to the amount of 166 billion USD in 2019. Climate change plays an increasingly large role in all natural disasters. The number of storms has increased to record, more intense wildfires, highest ever temperature, droughts ... The United Nations warns, if we don't want climate change to become an uncontrollable disaster, then every year the world needs a 7.6% reduction in emissions.
According to German reinsurance company Munich Re, natural disasters have caused 150 billion USD in damage globally in 2019, which is 10 billion USD higher than in 2018.