When considering the aftermath of a natural disaster, like the typhoon that recently hit the Philippines, two costs must be considered: the human and the economic. The human cost is often the one of the one that receive the most attention, and deservedly so, but the economic cost (which includes environmental), is also important.
A year after Hurricane Katrina, the insurance industry estimated $60 billion in insured losses, although several times that are likely closer to the true cost. Even Hurricane Hazel, the storm that hit Toronto in the 50s, cost the country $1 billion (adjusted for inflation).
Forbes bloggers Patrick Michaels and Paul Knappenberger writes about this issue, and the lots of uproar and little fact surrounding Supertyphoon Haiyan. He argues for more emergency preparedness, since the nature of natural disasters are still unpredictable, but can be protected against.
I agree with him, but I disagree that the free-market will be able to prepare against it without government interference. Governments compile huge amounts of data, and can offer assistance and pass laws, such as in earthquake-prone areas, where buildings are specially reinforced. The fact is that the storms are likely to get worse, and we have to be better prepared.
