Supplementary material The supplementary material (SM) with supplementary figures (SF) and tables (ST) is provided in 4 sections: SM1-4. SM1: Trends in losses for two statistical models Figure SF1 shows trends in losses for two statistical models as reported in Visser and Petersen (2012). The first model is a simple exponential fit, while the second one uses and integrated random walk. Visser and Petersen suggest that both statistical models are equally valid. Figure SF1: Loss trends in different statistical models Sources: Visser and Petersen, 2012 Note: the source of the loss data is both times Munich Re, 2011 SM2: Loss detection and projection studies Table ST1 provides a comprehensive overview of loss trend detection studies. The table and our analysis show that the different approaches that are used for adjusting loss lead to different outcomes. On the other hand, the strength of the different studies is that different approaches and use of indices and different datasets lead to very similar outcomes. In general, many studies have studied loss databases with a limited length (periods shorter than 40-50 years), which reduces the possibility to determine impacts of anthropogenic climate change. Table ST1 provides a comprehensive overview of loss trend detection studies. Table ST1: Disaster loss trend detection studies Hazard Bushfire Flood Flood Flood Flood Flood Flood Hail Hail Windstorm Windstorm Thunderstorm Tornado Tornado Tornado Tropical storm Tropical storm Tropical storm Tropical storm Region Australia USA China Europe Spain Korea Bangladesh USA Germany USA Europe USA USA USA USA Latin America India USA USA Period 1900-2009 1926-2000 1950-2001 1970-2006 1971-2008 1971-2005 1970-2007 1951-2006 1974-2003 1952-2006 1970-2008 1949-1998 1890-1999 1900-2000 1950-2011 1944-1999 1977-1998 1900-2005 1950-2005 Normalization None Wealth, population GDP Wealth, population Insurance premiums, dwelling values Population GDP, population, vulnerability Property, insurance market values Insured value, number of contracts Property, insurance market values Wealth, population Insurance coverage, population Wealth None Wealth, population Wealth, population Income, population Wealth, population GDP, population Tropical storm Tropical storm Storm Thunderstorm, hail Weather Weather Weather Weather Weather Weather Weather China USA USA USA 1983-2006 1900-2008 1952-2006 1970-2009 GDP GDP Property, insurance market values GDP Global Global Germany USA Australia USA World 1980-2009 1990-2008 1973-2008 1980-2008 1967-2006 1951-1997 1950-2005 Wealth Wealth, insurance conditions Wealth, insurance conditions Wealth, insurance conditions Dwellings, dwelling value Wealth, population GDP, population Source: Bouwer, 2011a, updated with recent papers, indicated in bold Normalized loss No trend No trend Increase since 1987 No trend No trend Increase Decrease Increase since 1992 Increase Increase since 1952 No trend Increase No trend No trend No trend No trend No trend No trend Increase since 1970, no trend since 1950 No trend Increase since 1900 Increase Increase Reference Crompton et al. 2010 Downton et al. 2005 Fengqing et al. 2005 Barredo 2009 Barredo et al. 2012 Chang et al. 2009 Tanner et al. 2007 Changnon, 2009a Kunz et al. 2009 Changnon 2009b Barredo 2010 Changnon 2001 Brooks and Doswell 2001 Boruff et al. 2003 Simmons et al. 2013 Pielke et al. 2003 Raghavan and Rajesh 2003 Pielke et al. 2008 Schmidt et al. 2009 No trend No trend Increase Increase No trend No trend Increase since 1970, no trend since 1950 Neumayer and Barthel 2011 Barthel and Neumayer 2012 Barthel and Neumayer 2012 Barthel and Neumayer 2012 Crompton and McAneney 2008 Choi and Fisher 2003 Miller et al. 2008 Zhang et al. 2009 Nordhaus 2010 Changnon 2009 Sander et al. 2013 SM3: Trends in drivers of risk UNISDR for work on a global model for their bi-annual Global Disaster Assessment reports models exposure, vulnerability and risk for a number of hazards with a regional and decadal resolution. Figure SF2 shows trends in flood exposure, vulnerability and risk in relation for direct economic losses from 1980 to 2010 for South and South West Asia, and SF3 for the OECD region for 1990 to 2010 as reported in UNISDR (2011) and UNESCAP/UNISDR (2012). Figure SF2: Trends in flood disaster risk, exposure and vulnerability between 1980-2010 for the SSW region Note: In addition to Bangladesh the South and South-West Asian region comprises Afghanistan, Bhutan, India, the Islamic Republic of Iran, Maldives, Nepal, Pakistan, Sri Lanka and Turkey. Source: UNESCAP&UNISDR, 2012 Figure SF3: Trends in flood disaster risk, exposure and vulnerability between 1990-2010 for OECD countries Source: UNISDR, 2011 SM4: Modelling economic flood risk in Bangladesh Table ST2 reports data detail on large riverine flood disasters in Bangladesh in terms of hazard (return period, flooded area), exposure (population, assets), and risk/impacts (fatalities, losses). As vulnerability cannot be observed directly, it is derived as normalized losses per GDP/flooded area (and fatalities per population/flood area), which can be considered a normalization procedure. Table ST2: Selected impacts for the worst floods in Bangladesh over the last four decades Observed variable Model variable Return period (years) Probability Flooded area (000 sq km) Proxy hazard 1998 1988 2007 1987 2004 1974 1984 1% 2% 7% 8% 9% 11% 53% 100 90 62 57 58 53 28 Population (million) GDP current (million $) Fatalities Proxy Proxy exposure Risk of loss of exposure of of assets life population 127 44092 1,050 105 26034 2,440 146 68415 405 102 23969 2,280 139 56561 761 74 12459 28,700 95 19258 1,200 Losses (million Fatalities/population current $) (per million) Fatalities/population Losses/GDP/flooded (per million)/flooded area area Risk of asset Relative risk of loss Relative risk of Proxy vulnerability Proxy vulnerability losses of life loss of assets (stage damage curve) assets damage curve) 2,128 1,424 1100 1,167 1,860 936 378 8% 23% 3% 22% 5% 388% 13% Losses/GDP 4.8% 5.5% 1.6% 4.9% 3.3% 7.5% 2.0% 0.12 0.38 0.07 0.57 0.14 10.69 0.66 0.07 0.09 0.04 0.12 0.08 0.21 0.10 The empirical data form the basis for numerically modelling risk as a function of hazard, exposure and vulnerability as well as climatic and socio-economic, which is displayed graphically in figure SF4. Figure SF4: Methodological approach for assessing risk driven by societal and climate changes for the case of riverine flooding in Bangladesh Table ST3 tabulates key assessment modules including a discussion of functional relationship or drivers and the sources. Table ST3: Modules, functional relationships and input data Module and output Climate (warming) Functional relationship or drivers SRES scenarios A2 and B1 Source Nakicenovic and Swart, 2000 3 Precipitation Function of mean temperature change PRECIS RCM for A2 and B1 (Tanner et al. 2007) Maximum discharge Function of precipitation Economic vulnerability Observed losses and vulnerability Flooded area Function of max discharge Exposure GDP, Population, assets Based on Conway et al., 2007 in Tanner et al., 2007 Bangladesh loss statistics (Based on CRED 2013) Statistical model (based on Mirza 2002) World Bank, 2013; SRES scenarios given by Nakicenovic and Swart, 2000 Risk: economic losses Function of flooded area, economic vulnerability and exposure The data to model the relationship between temperature change (over mid 20th century levels) and change in precipitation (%) is based on model results from 10 global circulation models). A simple relationship (polynomial of degree 2) between years and mean regional temperature change has been assumed which is based on the table above and the monsoon months. Modelled area flooded under projections of climate change (B1) scenario is shown in figure SF5. Figure SF5: Projected change in frequency of severe instances with areas flooded Source: Hassan and Conway, chapter 5 in Tanner et al., 2007. The spatial resolution is country-level and for such analysis spatially-explicit hydrological modelling is not useful for informing hazard analysis. Instead, a statistical approach was applied for the monsoon months from June to August based on observed river flows in the three largest river basins in Bangladesh: The Ganges, the Brahmaputra and the Meghna. While rough, this appeared to be a valid approach, which may not be applicable for other countries with less homogeneous terrain. The relationship between precipitation change and (average) mean peak discharge is modeled based on Mirza (2002), who uses three global circulation models for each of the river basins. Discharge is modelled as the sum of maximum discharges (DMax_G, DMax_B, DMax_M in the 3 river basins (Meghna, Brahmaputra and Ganges), which are DMax _G = 603.48DP + 52623 (1) DMax _ B = 535.59DP + 65271 (1’) DMax _ M = 227.73DP +14084 (1’’) Dt = DMax _G + DMax _ B + DMax _ M (1’’’) A Gumbel model for event severity is used and the relationship between flooded area and the discharge levels is estimated with a nonlinear regression model based on past maximum discharge levels from 19502010. The coefficient of variation for the flooded area was kept constant over time, i.e. it was assumed that an increase in average flooded area due to climate change also would increase the standard deviation of flooded area. F ( x) exp( exp( x)) (2) A location and scale change re-parameterization (Fisher-Tippet) yields the following distribution: 4 x F , ( x) exp( exp( / 6 )) (2’) 1 with lim n k log n 0.5772 k The Fisher Tippet distribution for maximum discharge and the non-linear function for flooded area are estimated based on past maximum discharge levels (1950-2010) and flooded areas. Overall, the relationship between flooded area and discharge level Dt is estimated as æ Dt ö F(t) =1.2621ç ÷ è 10000 ø 3.778 (2’’) Economic vulnerability is a function of flooded area Ft, and a time-dependent process VIt. Applying OLS regression for losses over time, we estimated the vulnerability index VIt in order to adjust vulnerability over the observed time period as well as future years. V(Ft ,VI t ) = v0 * Ft *VI t VI(t) = 5E + 25*e(-0.0308*t) (3) Losses (risk) are finally calculated via multiplication of vulnerability with exposure in the respective year, and indicated in constant 2005 USD or as a percentage of GDP. L(t) = Vt * Et (4) 5 Additional references for the supplementary material Barredo, J. I. (2009). Normalised flood losses in Europe: 1970-2006. Natural Hazards and Earth System Sciences, 9, 97-104. Barredo, J. I. (2010). No upward trend in normalised windstorm losses in Europe: 1970–2008. Natural Hazards and Earth System Sciences, 10, 97-104. Barredo, J., Saur, D, and M. C. Llasat (2012).Assessing trends in insured losses from floods in Spain 1971– 2008 Natural Hazards and Earth System Sciences. 12, 1723–1729 Barthel, F., E. Neumayer (2012): A trend analysis of normalized insured damage from natural disasters. Climatic Change, 113, 215-237. Boruff, B. J., J. A. Easoz, S. D. Jones, H. R. Landry, J. D. Mitchem, and S. L. 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