Floods effects greatly underestimated

Hardly any region in the world is safe from floods. One need only think of Mississippi River floods in April and May 2001 causing record losses in the billions of dollars. Or the rushing masses of water that enveloped parts of southern China and Pakistan earlier in the year or Thailand right now.

Nonetheless, people often underestimate the destructive power of water, as the latest Allianz Risk Pulse shows. "Risk awareness of natural catastrophes is not sufficient. This also means that people often do not take enough precautions," says Clement B. Booth, member of the Allianz SE Board of Management

Clem Booth: "Risk awareness of natural catastrophes is not sufficient"

Flooding is the most commonly occurring natural catastrophe in the world. In 2010, the international disaster database EM-DAT counted roughly 400 natural catastrophes with at least 100 people affected or 10 deaths. Nearly half of those catastrophes were floods (182 cases), affecting some 179 million people all over the world.

The causes were mostly man-made: whether through climate change or massive interference in the natural flow of rivers and flood plains greatly aggravated flood risks.

"More and more natural drainage areas are being sealed off, for instance by road-building. On top of that, ever more housing developments are going in near rivers. Both of these factors add up to floods with massive economic and humanitarian effects," says Markus Stowasser, an expert on the Cat Research & Development Team at Allianz SE Reinsurance.

Flooding is the most commonly occurring natural catastrophe in the world. In 2010, the international disaster database EM-DAT counted roughly 400 natural catastrophes with at least 100 people affected or 10 deaths.

People are still very reluctant to invest in prevention. As a result, floods cause not only a lot of damage to buildings but also to the objects in them. And damage is not just limited to river-front property. Heavy rains can result in flooding everywhere.

The fact is that there are even simple things you can do before and during a flood that will reduce losses significantly. As the Risk Pulse recommends, valuables should be stored in safe places (like upstairs) when a flood hits, and basic utilities such as gas, water and electricity should be shut off. Important documents such as insurance policies should also be easy to access and kept in a safe, dry place.

Flood insurance itself is a relatively simple step to take that is often overlooked. "Only few people live in areas where insurance against natural hazards and flooding isn’t at all possible," says Booth.

However, as the Risk Pulse concludes, insuring yourself against flood risks is not where things begin or end. Insurers, media and politicians must continue to make people aware of the need for effective risk prevention.

 
As with all content published on this site, these statements are subject to our Forward Looking Statement disclaimer.
Link to the disclaimer

Group Communications

Phone +49.89.3800-18475

Send e-mail