Lloyd's, which carried out the research alongside the Cambridge Centre for Risk Studies, stressed that its "systemic risk scenario", which models the global economic impact of extreme weather, was hypothetical. But it said the work would improve business and policymaker understanding of their exposure to critical threats such as extreme weather. When adjusting the estimated $5 trillion in losses over a five-year period for the probability of those extreme weather events occurring, the expected global economic losses were $711 billion, Lloyd's said. Lloyd's modelled global economic losses of extreme weather events by estimating the impact of food and water shocks on global gross domestic product over a five-year period. The Caribbean region would lose 19% of its GDP over five years if the extreme weather events were concentrated there, Lloyd's estimated.

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Persons: Umit, Lloyd's, Trevor Maynard, Tommy Reggiori Wilkes, Mark Heinrich Our Organizations: REUTERS, Cambridge Centre, Risk, Thomson Locations: Turkey's, Istanbul, Turkey, London, Greater China, Caribbean