BRISBANE FACES MULTI-BILLION DOLLAR ECONOMIC RISK

Written on the 7 September 2015

BRISBANE FACES MULTI-BILLION DOLLAR ECONOMIC RISK

BRISBANE'S economy risks a US$11.17 billion blow from a series of manmade and natural threats over the next decade, according to Llloyd's.

The insurance market specialist's City Risk Index 2015-2025 analyses gross domestic product (GDP) at risk across 301 major cities.

Findings indicate that a total of US$4.6 trillion of projected GDP is at risk from disasters, based on original research conducted by the Cambridge Centre for Risk Studies.

Australia's top six cities have more than US$81 billion at risk, with significant exposure to natural threats including drought, heatwaves, floods and earthquakes.

Brisbane is most vulnerable to a market crash, which accounts for more than half the city's GDP at risk. This was followed by the potential for cyber-attack and significant losses from human pandemic.

Lloyd's general representative in Australia Chris MacKinnon says it's important to be aware of the economic risk exposure across major cities.

"While in Australia we are all too aware of the perils bushfire, flood or storm, we should be increasingly aware of a number of emerging threats highlighted in the report," MacKinnon says.

"Solar storms, human or plant pandemic or cyber terrorism are emerging threats which need to be considered and while the insurance industry continues to innovate with specialist insurance and reinsurance coverage, government, business and communities must work together to create a more resilient response to a major event.

"Increasing insurance cover is an essential tool in mitigating risk and reducing the burden which often falls on governments and taxpayers to fill the gap."

He says a 1 per cent lift in insurance penetration equates to a 13 per cent reduction in uninsured losses, which cuts taxpayer contribution by 22 per cent after a disaster.

The findings aim to show the need for governments and businesses to work together to build more resilient infrastructure and institutions, to facilitate quicker recovery following a catastrophe.

 


Latest News

OROTON GOES CLICKS AND BRICKS AS PROFITS SLIDE

TWO former Aussie lawyers have turned their passion for fashion into a $15 million dollar international business six ...

MANTRA'S SHARE PRICE SURGE INDICATES 'SUITORS ARE CIRCLING' THE HOTEL GROUP

THE rumour mill surrounding a high-level takeover of Mantra Group (ASX: MTR) is in full production with its shares su...

MELBOURNE CBD GEMS SELL FOR $17 MILLION, MARKING A NEW PROPERTY HOTSPOT

LITTLE Lonsdale Street in the heart of Melbourne's CBD has become a favourite for investors in 2017, following th...

CAN GOOGLE RECOVER FROM GLOBAL CONTROVERSY OVER ITS PROGRAMMATIC ADVERTISING SYSTEM?

IT'S the story that has rocked the world of advertising. The lucrative Google (NASDAQ: GOOGL) advertising system ...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter