Kathmandu. Insurance losses from global natural disasters are expected to exceed $200 billion in 2025.
The Geneva Association estimates that natural disasters in 2020 will increase from $100 billion annually to more than $200 billion this year. According to the association’s report, insurance losses will double in 2025.
In particular, storms, floods, fires and lightning have damaged many of the insured physical structures, the report said. Not only climate change, but human decisions have also increased insurance losses, the report said.
The cost of insurance is increasing due to the increase in reconstruction costs, rising inflation, affecting the supply chain and lack of labor. Similarly, problems in insurance expansion are having a major impact on economies due to the damage caused by natural disasters, according to the Geneva Association.
Insurance expansion is slow, especially in Asian countries, the report said. The main reason for this is that countries do not pay attention to insurance and financial awareness. – Agency
