The cost of being unprepared for catastrophic events is high for cities
Cities are a hallmark of modern life: More than half the world’s population lives in a city, a dramatic increase from the 13% who did so at the start of the 20th century. By 2050, it’s estimated that two-thirds of people around the globe will be living in cities.
The concentration of people brings efficiency and prosperity, but with it comes an increased vulnerability to the impact of catastrophic events. For its latest City Risk Index, Lloyd’s looked at the GDP cities around the world could potentially lose if exposed to an event such as a pandemic, hurricane or market crash. Five of the top 10 cities most at risk are in Asia Pacific, and while no Australian cities made the top 10, Lloyd’s highlighted their exposure to threats such as drought, cyber attacks and a market crash.