Home / International / Every dollar spent on resilience saves five: Zurich
29 June 2020
Every dollar invested early to improve resilience to natural hazards helps, on average, to avoid five dollars in future losses, Zurich’s latest Risk Insights report says.
This statistic makes “a very clear case for investing up front rather than spending money only after an event to deal with incurred losses and finance repair,” the “Keeping an Eye on Natural Hazards” paper says.
Zurich says the number of disasters and their magnitude are growing at an unprecedented rate and there has not been significant success in halting the substantial increase in economic losses.
It says a “multiple-risk radar” is more important than ever, with the COVID-19 crisis another reminder to reflect on “how we can better recognise the early indicators in order to prevent, prepare for and respond to an event.”
The pandemic has “removed any doubt about the importance of understanding supply
chain vulnerabilities and interconnected risks,” the report says.
“The crisis served to reveal weak spots for many businesses and organisations, which can be
strengthened through proper planning in the event of a future pandemic.”
Zurich, which is currently preparing a report focusing on the 2018/19 bushfires in Tasmania, offers five key risk management recommendations: