According to a recent Swiss Re Institute report, flood adaptation measures such as dykes, dams, and flood gates can deliver economic benefits up to ten times greater than post-disaster rebuilding costs, highlighting the urgent need for proactive flood protection.
The Swiss Re Institute’s findings follow a year of mounting losses from natural disasters, with economic damage totalling an estimated USD 280 billion in 2023, including USD 51.6 billion in flood-related costs. Flood adaptation investments, the study shows, are not only more cost-effective but can also dramatically reduce flood damage by 60–90%, particularly in densely populated areas.
“Investing in flood preparedness and climate adaptation not only bolsters economic stability and generates jobs but also protects lives,” said Veronica Scotti, Chairperson of Public Sector Solutions at Swiss Re. “Despite these clear benefits, chronic underfunding persists. Creating an environment that attracts private capital to climate adaptation, while also optimizing public funds, is essential.”
Swiss Re’s research demonstrates that flood protection benefits vary regionally, but grey infrastructure like dykes and levees consistently prove effective. Globally, their benefits outweigh costs by two to seven times, reaching as high as ten times in areas most vulnerable to flooding. These structures can reduce coastal flood damage substantially, while in less populated regions, nature-based solutions—such as barrier island restoration or foreshore vegetation—are equally valuable.
Policy measures, such as land use restrictions, also enhance flood prevention value, especially in emerging economies. Zoning and flood defenses have been found to be nearly twice as effective as accommodative measures like dry proofing.
Swiss Re’s report emphasises the value of public-private collaboration in implementing and funding flood adaptation efforts. By investing in protection, the public sector can limit risks for re/insurers and support economic resilience post-disaster. Involving the re/insurance industry early in the planning process can also help mitigate risks and ensure sustained economic protection.
Through investment in effective flood measures, Swiss Re Institute underscores that communities can not only achieve greater resilience but also substantial cost savings, as adaptation measures far outweigh the costs of disaster recovery.
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