Natural disasters cost Latin America and Caribbean over $360 billion

Over the last 50 years, Latin America and the Caribbean have experienced an average of one natural disaster per week, resulting in approximately 100,000 deaths and economic losses exceeding US$360 billion. A report titled “Hacia una Estrategia Iberoamericana de Respuesta a los Desastres de Origen Natural: Resiliencia, Seguro y Alianzas Público-Privadas,” produced by the Fundación Iberoamericana Empresarial (FIE), Mapfre, and CAF, highlights that four out of ten people in the region have been impacted by phenomena such as tropical storms, hurricanes, floods, droughts, heatwaves, and wildfires.

The analysis warns that climate change is increasing the frequency and intensity of these extreme events, which disrupts logistics chains, reduces income, and strains public finances. While regional progress has been made in civil protection and early warning systems, the report emphasizes the need for financial resilience mechanisms to accelerate recovery.

To mitigate future risks, the report estimates a requirement of up to US$31 billion annually for flood- and hurricane-resistant infrastructure. Additionally, it suggests mobilizing US$15 billion by 2030 for disaster risk management and adaptation. Recommendations include implementing financial instruments such as insurance, reinsurance, parametric schemes, and catastrophe bonds before disasters occur to reduce improvisation during reconstruction.