Helen Hodge, Principal Natural Hazards Analyst at risk analysis company Maplecroft was speaking at the firm released its Natural Hazards Risk Atlas 2011, which analyses the risks of major natural hazard events to 196 countries.

The atlas includes indexes and sub national maps for 12 separate natural hazards risks, including earthquakes, tsunamis, floods, droughts, cyclones, plus the Absolute Economic Exposure Index and the Socio-economic Resilience Index. 

In this year’s map USA, Japan, China and Taiwan are the only countries to be rated extreme risk for absolute economic exposure, whilst seven countries are rated ‘high risk’ including the emerging economies of  Mexico India , Philippines, Turkey,  and Indonesia.

However, China, India, Philippines and Indonesia are also rated as ‘high risk’ for socio-economic resilience. 

Ms Hodge said: “These countries are seen as booming economies ands have growing commercial and private wealth which will lead to rising insurance penetration.

“This means that natural hazards in these countries pose a far higher risk to investors and business, many of which are directing FDI flows into these economies, as they do not have the mechanisms with which to cope with the impacts of a major event.”

She added: “If you look at the US and Japan for example while they have suffered significant natural events this year, they have strong building regulations which have been designed and enforced with the threat of natural peril in mind.

“That is not the case in these emerging economies where as we have seen in recent building standards have not been as robust. While the economies are growing the resilience will not keep pace in the coming years.”

She added: “As underwriters’ influence grows along with their participation there will be the opportunity to work with governments and business to enhance their capabilities to protect against and recover from the effects of natural hazards.”