Disasters inflict loss of $37 billion to global Gross Domestic Product in six months: Mian Shahid

Lahore, August 12, 2015 (PPI-OT): Chairman of the United International Group Mian Shahid on Wednesday said global GDP lost 37 billion dollars due to natural and man-made disasters in first six months of ongoing year. Last year the disasters inflicted a loss of 54 billion dollars to the global economy in six months, he said. In the first six months of 2014, 4800 people lost lives due to natural and man-made disasters while 18000 lost lives in the first six months of 2015.

Four thousand people died due to severe heatwave in Pakistan and India while the insurance industry catered for 45 percent of the overall loses, according to a report prepared by a Swiss company. Mian Shahid said that the cover provided by the insurance industry is more than the payments distributed in the last ten years.

The earthquake in Nepal claimed 9000 lives of which majority was not covered but 160 million dollars were paid among the effected while the country’s GDP suffered by USD 5 billion. The insurance losses amounted to 1.8 billion dollars resulted from storms in the northeast of US, he said.

The tragic events are a reminder of the utility of insurance which does not lessen the emotional trauma that natural catastrophes inflict, but it can help people better manage the financial fallout from disasters so they can start to rebuild their lives.

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Amir Jaweed
United International Group (UIG)
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