Governments should learn to pass the buck on natural disaster costs
are paid out of many pockets, including governments of all levels, insurers, property owners and others.
The reality is that when there is a catastrophe, taxpayers are generally left to cover a substantial portion of the expenses, both directly and indirectly. Not only must they pay the insurance deductible for their own property damage and pay out of pocket for any uninsured damage they experience, but their tax dollars must…
Global Natural disasters cost insurers N16tr in 2016
The Munch Re’s report for 2016 has indicated that countries across the world suffered natural disasters to the tune of $175billion (N54.3trillion) in 2016. Out of this figure, only $50billion (N16trillion) was covered by insurance industry.
The details show that earthquake on Japan’s southern Kyushu Island caused $31billion (N9.6 trillion) worth of damage, with $6billion (N1.96 trillion) of the costs covered by insurance. Floods in China in June and July caused $20bn (N6.2 trillion) in damages with only $300 million (N93 billion) insured.
The third-costliest disaster was Hurricane Matthew, which hit the Caribbean and the eastern…