New Zealand: Lloyd's says man-made threats pose biggest risk to largest cities
Source: Asia Insurance Review | Jul 2018
Man-made threats account for over half (53%) of the risk to the annual economic output (GDP@Risk) of New Zealand’s largest cities, according to Lloyd’s.
In the latest edition of Lloyd’s City Risk Index (CRI), a financial market crash is the largest threat to Auckland and Wellington’s GDP, placing $320m at risk annually across both cities – more than one-third (34%) the annual total at risk, which stands at $940m. A financial market crash is also the top global risk, potentially reducing economic output in the world’s biggest cities by $103.3bn.
Flood and volcano risk are the second and third largest threats to Auckland and Wellington’s GDP, placing $120m and $100m at risk. These are followed by the threat of cyber attack at $100m – highlighting the importance of New Zealand building resilient digital infrastructure.
Auckland and Wellington are also among 16 of 92 cities in Asia Pacific to receive the highest resilience rating possible of ‘very strong’. This is higher than all Australian cities included which are rated as having strong resilience.
Lloyd’s CRI was developed in collaboration with the Cambridge Centre for Risk Studies and measures GDP@Risk from 22 separate threats in 279 major cities across the world. A