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Economic sectors that support the settlement are affected because of changes in
productive capacity or changes in market demand for goods and services produced there.
Some aspects of physical infrastructure including energy transmission, buildings,
transportation and specific industries (tourism, construction, etc.) may be affected. Population
may be affected through extreme weather, changes in health status, or migration. The most
widespread serious potential impacts are flooding, landslides, mudslides and avalanches,
driven by projected increases in rainfall intensity and sea level rise.
The costs of extreme weather events have exhibited a rapid upward trend in recent
decades. Part of the observed upward trend in disaster losses is linked to socio-economic
factors - population growth, increased wealth, urbanization in vulnerable areas - and part is
linked to climatic factors such as changes in precept, flooding and drought events. Weather
and climate related losses can stress insurance companies to the point of impaired
profitability, consumer price increases, withdrawal of coverage and many more.
3. Human Health