Natural disasters are not just wreaking havoc — they’re breaking economies. According to a new UN report, their true cost is now 10 times higher than previously believed. Thdise fallout spreads far beyond property damage, affecting healthcare, housing, education, and jobs, making disasters a key financial concern.
The Global Assessment Report 2025 (GAR 2025), titled “Resilience Pays: Financing and Investing for our Future,” was released by the United Nations Office for Disaster Risk Reduction (UNDRR). It shows how rising disaster costs are pushing countries toward debt, uninsurability, and spiraling humanitarian crises. But it also lays out how investing in resilience can reverse these trends caused by disasters.
DISASTERS WORSEN INEQUALITY, BUT INVESTMENT CAN SAVE LIVES AND SPUR GROWTH
UN Secretary-General António Guterres warns that disaster costs will only increase with climate change. Vulnerable populations bear the brunt. But, he said, there’s still hope. “By investing in prevention and risk reduction, we save lives and boost economies,” Guterres wrote in the foreword, addressing the escalating costs from disasters.
GAR 2025 maps out risks through 2050, showing how today’s policies can change future outcomes. It urges governments and businesses to act now, highlighting benefits of preemptive resilience spending against disasters.
A GLOBAL REALITY: RISK ZONES GROWING, INSURANCE FLEEING, DEBT SURGING
The report highlights current effects: some areas are now too risky for insurers due to frequent disasters. National debts are growing. Humanitarian responses are recurring instead of reducing.
UNDRR’s chief Kamal Kishore said risk-based investment can break these cycles. “Early warnings, flood barriers, and planning tools reduce damage and enable sustainable growth,” he said. “Resilience is not a cost — it’s an investment,” in a context where disasters challenge growth.
POLICY TOOLS, LOCAL SOLUTIONS: GAR OFFERS A WAY FORWARD
GAR 2025 includes global case studies and policy recommendations. It shows how early action saves money and lives — whether by updating infrastructure, expanding insurance access, or boosting education, particularly in areas prone to disasters.
Communities that have built flood defenses, early-warning systems, or improved land use planning saw fewer damages and faster recoveries from disasters.
FINANCING RESILIENCE: UN EYES PRIVATE SECTOR, BETTER MULTILATERAL SUPPORT
The findings align with the upcoming 4th International Conference on Financing for Development. The report offers ideas to reshape global finance, particularly for vulnerable developing economies, often hit hardest by disasters.
The private sector has a major role to play, GAR 2025 says. It can help reduce damage and close the protection gap for nations most at risk from disasters.
UNDRR will spotlight these issues at the Global Platform for Disaster Risk Reduction in Geneva (2–6 June), hosted by Switzerland. Key topics include investing in early warnings, critical infrastructure, and climate-resilient schools, to minimize the impacts of disasters.
RESILIENCE IS THE FUTURE: NO MORE RHETORIC, ONLY RESULTS
The report sends a clear message about the increasing costs of disasters: the cost of inaction is far greater than the cost of preparedness. If countries don’t act, the toll — human and financial — will only rise.
“Disaster risk isn’t just a humanitarian concern,” Kishore said. “It’s a development issue, a finance issue, a survival issue in the face of recurring disasters.”
