With just a few mouse clicks, their interactive “World Map of Natural Hazards” assesses which types of disasters are likely in a location and which, due to climate change, may become a threat in the future.

Europe’s 2003 heat wave, Indonesia’s 2004 earthquake and tidal waves, Hurricane Katrina in 2005 and Australia’s fires just this past year have all had a tremendous impact on businesses. According to the icons for fires, volcanoes, drought and high winds, there are more disasters on the way.

One of the first in the industry to study the link between natural disasters and business risk, Munich Re has been analyzing geoscientific phenomena, their risks and their loss potentials since 1974. The firm has collected extensive data showing the number of force majeure disasters, and their costs are rising steeply.

But can “acts of God” be predicted? In the insurance business, an act of God is something that occurs outside human control. Munich Re’s years of research expand the range of control, giving mere mortals the power to select locations where such occurrences are less likely to disrupt business. It also helps to reveal risks to business-critical telecommunications, energy supplies and transportation. Ignoring the numbers is akin to hoping for a miracle. Factoring risks in from the beginning when analyzing investment opportunities is just good business practice.

Published by PROJECT M in September 2009 

(Photo: gettyimages)