Media coverage
Neue Zürcher Zeitung features comments by Michael Stahel on rising costs of natural catastrophes
The Swiss newspaper Neue Zürcher Zeitung reports that the cost of natural catastrophes is growing by 5 to 7% per year due to urbanization, inflation and climate change. Michael Stahel, Partner at LGT Capital Partners, is quoted in the article and provides an outlook on current developments in the US.
Michael cites inflation as one of the main reasons for the increase in insured losses. He says that US tariffs are likely to further drive up the cost of materials needed to repair damage in the wake of natural catastrophes. In addition, restrictive immigration policies in the US are likely to make labor more expensive.
Michael adds that natural catastrophes have also become more costly because many exposed areas are now much more densely populated. If a hurricane were to follow the same path in Florida today as Hurricane Donna did in 1960, the consequences would be devastating.
Read the article in German here (behind paywall).