I’ve got a new essay up at Risk Frontiers on the decade-long dearth of weather disasters. An excerpt:
To the extent that people believe that we are presently in an era of large or unusual disasters, many will be in for a shock when large weather disasters again occur. And they will. A simple regression to the mean would imply disasters of a scale not seen worldwide in more than a decade.
Consider that 2005 saw weather disasters totaling 0.5% of global GDP. In 2017, if the world economy totaled $90 trillion (in a round number), then an equivalent amount of 2017 disaster losses to the proportional costs to 2005 GDP would be about $450 billion. That is about equivalent to Hurricane Katrina, Superstorm Sandy, Hurricane Andrew, the 2011 Thailand floods, the 1998 Yangtze floods all occurring in one year plus about $100 billion more in other disaster losses. And there is no reason why we should consider 0.5% of GDP to be an upper limit. Think about that.