Guy Carpenter today released a new report titled Flood Risk in Asia - A Detailed Study. The report provides an in-depth study of the flood potential in Asia along with the prevention and protection systems in place.
The 2011 Thailand floods, which lasted several months, severely damaged and disrupted manufacturing operations across the region. Such a flood loss was unprecedented in history. Therefore, Guy Carpenter embarked on a study to identify areas in Asia that have the loss potential akin to Thailand by investigating the meteorological, socioeconomic and historical situations.
“Our intent in publishing this report is to identify the flood potential in Asia so the insurance industry can be better prepared when the next flood occurs. Our findings show that the potential areas at risk are in no way limited to the ones considered. And more importantly, with economic growth and increased wealth of the various countries in the region, historic events that did not cause much damage could potentially be catastrophic if they were to happen again,” said Michael Owen, Head of GC Analytics, Asia Pacific.
In addition to rapid economic growth in Asia, these developing economies are also experiencing a shift in the population from rural to urban areas, particularly in China, Indonesia, Thailand, Vietnam and Malaysia where the concentration of people in urban areas has grown by more than 50% between 1990 and 2010. Much of this growth is occurring in flood-prone areas.