Disaster Threats and Risks on the Rise

From the Miami Herald: As natural disaster threats around the world increase, so do risks to businesses’ customers, supplies

 Richard S. Olson, director of the Extreme Events Institute at Florida International University, said companies have a growing incentive to reduce the risk of disaster damage to suppliers and customers because the insurance and reinsurance industries increasingly account for such risk in pricing their coverage.

Natural disaster risk is starting to command more attention because it is increasing worldwide. “The private sector’s awareness has spiked because of the vulnerabilities they’ve seen in their supply and production chains, and because the insurance and reinsurance industries are paying more attention to track recurrences of hurricanes, cyclones and typhoons,” Olson said. “There’s much more attention being paid by risk modelers to natural disasters.”

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