GAR 2015 Main Report

Part I - Chapter 3

Figure 3.13 Top 15 countries: Earthquake AAL in relation to capital stock (excluding SIDS)

(Source: UNISDR with data from Global Risk Assessment and the World Bank.)

2.5 per cent of its building stock. This investment is now just over half of that observed in upper middle-income countries such as Peru. As a result, Greece’s earthquake AAL has come to represent 10 per cent of its annual capital investment.

In terms of PML, over a 20-year period there is a 4 per cent probability of a loss equivalent to the value of more than 8 per cent of Greece’s capital stock (Figure 3.14) and over 300 per cent of the country’s annual capital investment. The country’s AAL is also equivalent to almost 2.5 per cent of its national income (GNI). It is unclear whether this contingent liability was taken into account when the international community provided over EUR 200 billion in loans to support the Greek economy between 2010 and 2012. In reality, earthquake risk could spill over into the financial system and become increasingly systemic.

(Source: UNISDR with data from Global Risk Assessment.)

Figure 3.14 Top 15 countries: Earthquake PML500 in relation to capital stock (excluding SIDS)

	66 Part I - Chapter 3 Figure 3.13 Top 15 countries: Earthquake AAL in relation to capital stock (excluding SIDS) (Source: UNISDR with data from Global Risk Assessment and the World Bank.) 2.5 per cent of its building stock. This investment is now just over half of that observed in upper middle-income countries such as Peru. As a result, Greece’s earthquake AAL has come to represent 10 per cent of its annual capital investment. In terms of PML, over a 20-year period there is a 4 per cent probability of a loss equivalent to the value of more than 8 per cent of Greece’s capital stock (Figure 3.14) and over 300 per cent of the country’s annual capital investment. The country’s AAL is also equivalent to almost 2.5 per cent of its national income (GNI). It is unclear whether this contingent liability was taken into account when the international community provided over EUR 200 billion in loans to support the Greek economy between 2010 and 2012. In reality, earthquake risk could spill over into the financial system and become increasingly systemic. (Source: UNISDR with data from Global Risk Assessment.) Figure 3.14 Top 15 countries: Earthquake PML500 in relation to capital stock (excluding SIDS)	Page 1 Page 10 Page 20 Page 30 Page 40 Page 50 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 ->Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 90 Page 100 Page 110 Page 120 Page 130 Page 140 Page 150 Page 160 Page 170 Page 180 Page 190 Page 200 Page 210 Page 220 Page 230 Page 240 Page 250 Page 260 Page 270 Page 280 Page 290 Page 300 Page 310