Natural catastrophes and man-made disasters in 2010: a year of devastating and costly events

Sigma 1/2011:

This study reports on the worldwide economic losses from natural catastrophes and man-made disasters in 2010 and the cost to the global insurance industry. This edition contains a special chapter on earthquakes, which reveals that the number of fatalities and insured losses from earthquakes are rising because population growth and higher population density, especially in urban areas, exposes more people to a single damaging earthquake. It highlights the importance of improved building standards that are strictly enforced, along with good infrastructure and efficient disaster relief efforts in mitigate the negative consequences of earthquakes.

It considers prevention, mitigation and risk avoidance with measures such as hazard mapping or comprehensive building codes as the most important steps for dealing with catastrophes. But it also encourages to consider the preparation for the financial aspects of risks as a key element of any disaster-prone country or region, as not all risks can be avoided.