Munich Re has urged Australia to increase its resilience efforts as natural catastrophes have quadrupled since 1980.
In their latest research paper, Natural disasters in Australia and New Zealand – Expect the unexpected,
the international player notes that as the magnitude and frequency of hazards increases so does the damage to the nation’s economy.
Current estimates made by the company place the damage to the economy at $6.3 billion a year which could rise to as much as $23 billion by 2050.
The report notes that climate change could see sea-levels in Sydney rise 0.66 metres by the 2090s with extreme droughts increasing by one and a half times.
“Recent years have demonstrated that the industry needs to focus more on the unexpected” Ludger Arnoldussen, Munich Re board member responsible for Australasia, said.
“We clearly know that such catastrophes will hit Australia and New Zealand more often and harder, unclear is just exactly when and where.
“With this publication we want to highlight such scenarios and help our clients and communities to be better prepared.”
The report also notes that increased earthquake activity could be felt across capital cities in Australia but Heinrich Eder, managing director of Munich Re in Australia stressed that the company still sees the country as a key market.
“We are very committed to the Australian and New Zealand markets. For over 60 years we have been offering local and global experience and financial strength, and have built up a deep expertise on all kinds of natural hazards,” Eder said.
“When it comes to local engagement, we are honoured to be a member of the Australian Business Roundtable, where we actively support the development of a national approach to create more resilient communities.”
To read the full report, click here