Welcome to our feature update on Natural Catastrophes and Climate Risks. Climate change is one of the biggest challenges of our time, which requires us to take urgent and decisive action. Swiss Re Institute's expertise report The economics of climate change: no action not an option ranks 48 of the world's economies by their susceptibility to climate risk. The results show that the global economy could lose up to 18% of GDP by mid-century if no action is taken, and Asia is among the world's most vulnerable regions, with 26.5% of GDP at risk when faced with climate change. The effects of climate change are evident, most notably in secondary perils. Many of us have experienced it – higher average temperatures, prolonged heatwaves, more extreme wildfire and more severe rainfall and flooding. This year's sigma report on Natural catastrophes in 2020 shows that among the USD 81bn insured losses inflicted by natural disasters last year, more than 70% resulted from secondary perils. In this update, we look back at lessons learned from disastrous events ten years ago, examine the impact of climate change in the years to come and discuss how our industry can help change the risk equation. We believe that together, APAC can lead the way in climate change mitigation, and our industry will play a pivotal role in strengthening the region's resilience. To learn more about Swiss Re's research findings and Property & Casualty solutions, please reach us at PC_Asia@swissre.com or contact your Swiss Re client manager. I look forward to hearing from you. Best regards,
Victor Kuk Head P&C Reinsurance Southeast Asia, India, Korea, Hong Kong and Taiwan
Mark Senkevics Head P&C Underwriting Asia & ANZ