Mumbai has the largest GDP exposure to terrorism on Llyod’s City Risk Index at almost $8 billion. It also has the second highest exposure to power outage with $1.92 billion of the GDP at risk.
The Lloyd’s City Risk Index, released on Thursday, presents an analysis of economic output at risk in 301 major cities from 18 man-made and natural threats over a 10-year period.
India’s 10 largest centres of economic growth have $179.8 billion of GDP at risk from a series of threats over the next decade, says the survey.
Vincent Vandendael, director of Global Markets, Lloyd’s, said: “Lloyd’s City Risk Index highlights the economic exposure of 301 major cities across the world. Governments and businesses, together with insurers, must work together to ensure that this exposure is reduced. Insurers, governments, businesses and communities need to think about how they can improve the resilience of infrastructure and institutions. Insurance is part of the solution.”
Across the 10 cities combined, the largest economic exposure is to pandemic risk, which could put $39.65 billion of GDP at risk, followed by floods at $33.84 billion, market crash at $21.13 billion, oil price spike at $20.81 billion and terrorism at $16.07 billion.
Lloyd’s plans to enter the Indian market and expects some clarity from the regulator.
“Lloyd’s has enjoyed a long history of providing specialist coverage for complex risks in India. As India’s economy expands and new risks emerge, Lloyd’s is looking to develop innovative solutions, which meet changing needs of business. In principle, about half of total GDP at risk can be protected by improving aspects of infrastructure and crisis management, with insurance playing a key role in this process, ” said Arun Agarwal, Lloyd’s General Representative, India.