Insurers, government officials and other stakeholders must move beyond asset-by-asset risk management to make cities more resilient to catastrophes, according to a new report.

Future Cities: Building Infrastructure Resilience says while risk management remains a priority, it is insufficient on its own and stakeholders must build resilience “within and between infrastructure systems”.

The report, from Lloyd’s and engineering group Arup, sets out three pathways to improve cities’ ability to cope with disasters.

First, prevent failure by making infrastructure more resilient to shocks, so even if parts fail temporarily the overall system carries on functioning.

Second, examine ways in which infrastructure can be restarted as quickly as possible post-disaster, to save lives and prevent further failures.

And finally, replace damaged infrastructure with more resilient versions during the rebuilding process.

Lloyd’s CFO John Parry says the greatest population increases are expected in cities most at risk from natural disasters, and cities are exposed to more risks than ever.

“It is absolutely critical that city officials, working with insurers and other stakeholders, act to improve city resilience,” he said.

Lloyd’s City Risk Index shows $US4.6 trillion ($6.01 trillion) of 301 of the world’s leading cities’ projected GDP is at risk from 18 threats over the next 10 years.

The report says brokers have an important part to play in educating clients.

“The role of education and shared understanding is fundamental to facilitating action and incentivising change,” the report says.

The provision of risk transfer through insurance gives clients confidence to take risk and allows them to recover from a disaster.

“Building resilience for all stakeholders means finding new ways to break down silos within and between government, the private sector and communities,” the report says.

A collective understanding of risks could facilitate better pricing, more informed policy and “a smoother journey to a more resilient future”.