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‘Disaster and Emergency Relief Framework’ IRDA , NDMA & FICCI Seminar. A Presentation Man-made Disasters versus Act of God by Mr. Yogesh Lohiya CMD, GIC Re 11 th August 2010, New Delhi. Section I Act of God? -A Global Perspective. Disasters Natural Vs Man-made.
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‘Disaster and Emergency Relief Framework’IRDA, NDMA & FICCI Seminar A Presentation Man-made Disasters versus Act of God by Mr. Yogesh Lohiya CMD, GIC Re 11th August 2010, New Delhi
Section I Act of God? -A Global Perspective
DisastersNatural Vs Man-made • Man-made (generally localized) Industrial accidents. • Natural (Act of God) (area of spread is vast) Earthquakes/ Tsunami/ Cyclones. • High Volume of losses in both cases. • Mitigation (long term process) & relief measures (immediate) cannot be largely different. • Preventive measures are not a general trend and largely ignored by the society.
DisastersNatural Vs Man-made • People do not voluntarily adopt simple and cost effective loss prevention measures • Underestimate the likelihood of a disaster more so happening to them. • Myopic behavior impedes the process of loss prevention. • Faith in the government to take steps to prevent & protect from disasters.
Catastrophes : Some Facts • There are twice as many people on Earth today as there were in 1950. • A greater concentration of values than in 1950. • 4 times more globally • 6 times more in third world countries • Most of the growth concentrated in coastal areas • More prone to weather risks (cyclones)
Catastrophes: Some Facts • Catastrophes are more frequent now • 3 fold increase in numbers as in 1950 • Catastrophes are more severe in intensity • 8 fold increase in severity as in 1950 • Increase in insured losses- 15 X.
Catastrophes in 2009 • Total Catastrophes: 288 • Natural Catastrophes: 133 • Man made Catastrophes: 155 • Loss of lives: 15,000 • Natural Catastrophes: 9,000 • Man made Catastrophes: 6,000
Number of Cat Events-1970-2009 Swiss Re, sigma No 1/2010
Nat Cats in 2009 • Hydrological disasters (floods) remained the most common disasters in 2009, accounting for 53.7 percent. • Followed by storms (hurricanes) accounting for 25.4 percent. • Geophysical disasters (earthquakes, volcanoes) accounted for 2.7 percent.
Catastrophes in 2009 • Economic damages: US $ 62 billion • Natural Catastrophes: US $ 41 billion • Man made Catastrophes: US $ 21 billion • Cost of Man-made disasters (insured losses): US $ 4 billion
Section II Exposure to Natural Catastrophes in India
INDIA – Vulnerability To Natural Catastrophes • Indian sub-continent considered one of the most hazard-prone countries in the world • 85% of land area vulnerable to various types of Natural Catastrophes
EARTHQUAKES • Seismically active • 59% of prone to EQs • Four EQs above 8 & ten above 7.5 on Richter Scale in the last 100 years. • Seven in the last 2 decades • Dense Population & Old Construction adds to the problem.
CYCLONES • 8041 km long coastline • Large Coastline; large population; large destruction. • Tropical Cyclones generally strike Eastern coast • Western Coast too is struck • Thunderstorms (Nor’westers) common in NE, NW, Central & SW India • Cyclone associated strong winds & rains compound the destruction. • Floods & Coastal Inundations too are a risk. • 15 cyclones have struck the Indian coast in last 100 years.
FLOODS • India is the 2nd most flood affected country after Bangladesh • 40 mln hectares land mass prone to floods; 8 mln hectares affected annually. • Rising population; developmental activities in flood plains make it more disastrous. • Climate change also makes weather volatile leading to disasters. • Avg. Annual Loss: US$ 400Mln. • Urban Floods & Inundations are a new phenomena now. • Mumbai Floods (2005)
Section III Are Natural Catastrophes Act of God?
Cat Events in India • “Disastrous Weather Event” in Leh on 6.8.10 • IOC Jaipur Fire 2009 • Mahul Oil Installations in Mumbai • Surat Floods 2005 • Mumbai Floods 2005 • Plague/H1N1 Flu/ Bird Flu- 1994/ 2009 & 2010
Catastrophic Events- Impact on India • Loss of Life & Property on a large scale • Majority of the affected uninsured • Direct Losses due to natural disasters amount to (average per annum)- • 2% of India’s Gross Domestic Product • 12% of Federal Government’s Revenues • All alleviation/ mitigation efforts post-event • Disruption of Trade & Commerce
Catastrophic Events- Impact on India • Some of the worst CAT losses have occurred in India • Top in natural-disaster-caused mortality in 2009: 1806 victims in India • Low values & Low penetration are the causes • Catastrophe Risk Mapping is not complete • Detailed data is not available • Geographical Position makes us vulnerable to events occurring in neighbouring areas. • (Tsunami/ Earthquakes)