A new report from Lloyd’s warns that a severe solar storm could cause global economic losses of up to $2.4 trillion over the next five years, with an initial loss of $17 billion. The analysis highlights the potentially devastating impact of extreme space weather, a scenario that insurers and businesses are urged to prepare for using data-based models.
The report outlines the financial toll of such an event across regions, with Greater China expected to face losses of $429 billion and Asia-Pacific projected to lose $375 billion. North America is estimated to experience the highest financial impact at $755 billion, while Europe follows with $697 billion.
Rebekah Clement, Director of Corporate Affairs at Lloyd’s, emphasized the importance of equipping businesses, governments, and insurers with data-driven models to foster stronger collaboration and effective preparation. “Historically, extreme space weather has been rare, but with the right tools, we can prepare for such disruptions,” she said in a press release.
The risk model identifies three severity levels, with potential losses ranging from $1.2 trillion in a mild scenario to $9.1 trillion in the most severe case. This could lead to a global GDP reduction between 0.2% and 1.4%.
A solar storm of this magnitude could severely disrupt critical systems, including energy grids, satellite networks, navigation, communications, and financial infrastructures worldwide.
The findings were presented at a recent Lloyd’s event, which featured the exhibition “Life in the Sun’s Atmosphere: From Disruption to Resilience” by space photographer Max Alexander.
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