Lloyd's of London Warns Extreme Weather Could Cause $5 Trillion in Economic Losses

Lloyd's of London estimates global economic losses from extreme weather could reach $5 trillion over 5 years under a plausible scenario.

This systemic risk scenario models the global impact of crop failures and food/water shortages due to climate change.

When adjusting for probability, expected losses are $711 billion over 5 years.

Model shows losses concentrated in Greater China could be $4.6 trillion, while the Caribbean could lose 19% of GDP if hit hard.

Research aims to help businesses and policymakers understand systemic threats like extreme weather.