Economic Losses to Increase Due to Climate Change, Swiss Re Says

By Helena Smolak

Swiss Re Institute warns of rising economic losses due to climate change.

The research institute of the Swiss reinsurer said Wednesday that weather-related natural catastrophes cause global estimated economic losses of $200 billion every year.

Out of 36 countries, the U.S. and the Philippines rank as the most economically exposed countries, facing annual economic losses of $97 billion and $12 billion due to severe weather events, respectively.

Countries with large insurance protection gaps and lagging adaptation measures, such as Thailand, China, India and the Philippines, face heightened financial risks, according to the institute.

"The more accurately climate change risks are priced, the greater the chances that necessary investments will actually be made," Swiss Re Group Chief Economist Jerome Jean Haegeli said.

The main driver of major weather-related economic losses in the U.S., East and Southeast Asia are tropical cyclones, Swiss Re said.

Write to Helena Smolak at [e-mail]

(END) Dow Jones Newswires

02-28-24 0525ET