Natural disasters cost the world US$194b

Natural disasters are estimated to have cost US$194 billion (HK$1.51 trillion) in economic losses in the first half of the year, a 12-year-high, according to a report from professional services firm Aon.

The company puts insured losses at US$53 billion, the fourth highest on record, citing storms in the US, earthquakes in Turkey, floods in New Zealand and the US, and wildfires in Canada as the major contributing loss events.

The report estimated that global economic losses from catastrophic natural disasters amounted to US$194 billion

Earthquakes in Turkey and Syria accounted for almost half of the total, with a recorded economic cost of US$91 billion, it said.

Aon's Head of Catastrophe Insight, Michal Lorinc, said the disasters observed this year underscore the need to regulate and enforce building codes to mitigate both material and human losses.

Referring to the earthquakes in Turkey and Syria, Lorinc said these devastating events serve as a reminder that it is critical to strengthen resilience and mitigate risk, particularly in terms of building codes.

Meanwhile, global reinsurance broking and advisory firm Gallagher Re's chief science officer, Steve Bowen, warned that "severe impacts" are being anticipated from the upcoming El Nino weather system as he predicted warmer and drier conditions for Australia in the forthcoming months.

Bowen emphasized that the arrival of El Nino could lead to further global disruptions and significant impacts from weather and climate events throughout the rest of the year.