Linking temperature to catastrophe damages from hydrologic and meteorological extremes

Abstract

Increases in the magnitude of storm and flood related catastrophes due to climate change are predicted to increase associated economic losses. There exists, however, conflicting evidence for greater economic losses despite well acknowledged increases in the severity of observed extreme events in recent decades. Here, using a worldwide catastrophe insurance database from 1970 to 2015, we link the catastrophe economic loss from extreme storms and floods to local temperature. We find a statistically significant positive association between economic losses expressed as a proportion of GDP and local temperature. The association between economic losses and temperature is greater as the event becom..