Reto SCHNARWILER Swiss Reinsurance Ltd

1. a
Economics of Disasters –
Costs and Financing
Mechanisms
IDRC Conference, Davos, 28 August 2012
Reto Schnarwiler
Swiss Re Global Partnerships | August 2012

2. a
Catastrophes losses are rising globally -
massive gap between economic and
insured losses
Natural and man-made catastrophe losses 1981-2011, in USD billion
Insured losses Economic losses
350
300
250
200
150
100
50
0
1981 1986 1991 1996 2001 2006 2011
Note: Loss amounts indexed toand business interruption, excluding liability and life insurance losses
Insured losses: property 2009 Source: Swiss Re, sigma No 2/2010 Source: Swiss Re, sigma No 2/2012
Swiss Re Global Partnerships | August 2012 2

3. Disasters place a significant burden
on the public sector
a
Costs of catastrophes Financing considerations
USD bn, 2011 prices
350 Individuals
300
Insurers
250
200
Public
150 sector
100
50 Corporates
Banks
0
1981 1991 2001 2011
Quelle: Swiss Re sigma database
Swiss Re Global Partnerships | August 2012 3

4. Economic costs of major disasters:
big differences
a
Year/event Victims Insured Economic Insured loss Economic
losses, USD losses, USD bn as % of loss as % of
bn, 2012 prices economic loss GDP
2012 prices
2011:
19 135 36 214 17% 3.6%
EQ Japan
2011:
181 12 15 80% 9.6%
EQ New Zealand
2011:
813 12 31 40% 8.8%
Flood Thailand
2010: EQ Chile
562 8 32 27% 14.6%
2010: EQ Haiti
222 570 0.1 8 1% 129%
2010:
0.47 7 17% 3.9%
Flood Pakistan 1 985
2005:
1 836 76 164 46% 1.3%
Hurricane Katrina
Source: Swiss Re Economic Research & Consulting
Swiss Re Global Partnerships | August 2012 4

5. Today's speakers
a
 Nina Becker, Helmholtz Centre for Environmental Research, Germany:
Cost assessment of natural hazards – state-of-the-art, knowledge gaps and
recommendations
 Mohamed Tabyaoui, Ministry of General Affairs and Governance, Morocco:
Risk Management of Natural Disasters in Morocco: a project of Global and
Integrated Strategy
 Daniel Kull, Global Facility for Disaster Risk Reduction, World Bank, Geneva:
Economic impact of disasters – the role of regional disaster insurance
facilities
 Fatima Kassam, World Food Programme, Rome:
African Risk Capacity – Sovereign Disaster Risk Management for Africa
Swiss Re Global Partnerships | August 2012 5