The devastating impact of Beryl: economic and social impact in Texas after the hurricane

The cascade of crises triggered by Hurricane Beryl in Texas has highlighted the serious consequences of natural disasters on the economy and society. While the immediate image of a hurricane is usually the physical devastation it leaves in its wake, insurance and reinsurance companies are increasingly concerned about the chain damages that these phenomena can trigger. Disruptions in productivity, health, and supply chains represent significant economic costs that accumulate after the storm. According to climate economist Chris Lafakis of Moody's Analytics, costs resulting from natural disasters like Hurricane Beryl manifest through multiple channels, including power outages, loss of workdays, property damage, and higher insurance premiums. It is estimated that global losses caused by these events could increase from 1.6% to 7.1% of the gross domestic product by the year 2100, according to Moody's projections. The impact of Beryl in Texas offered a bleak picture: 38 centimeters of rain, floods, power outages leaving over 1.3 million homes and businesses without electricity, and stifling temperatures putting the population's health at risk. The combination of a hurricane followed by a power outage during a heatwave exacerbated the crisis, leaving thousands of people without air conditioning and limiting the supply of fuel, food, and services. Insured losses from Beryl in Texas could amount to US$3.5 billion, according to CoreLogic estimates, not counting additional costs for medical services due to heat stress or other indirect consequences of the storm. Reconstruction and recovery after a natural disaster like this require financial resources and time, resources that are diminished by the impact of climate change. The Swiss Re report warns of the increasing risk of chain effects due to climate change, pointing out how events like wildfires, floods, and storms can damage critical infrastructure and disrupt supply chains, resulting in significant losses in the production and distribution of goods and services. The unpredictability of climate patterns and the growing frequency of hurricanes pose a vulnerability scenario for cities like Houston and other regions previously not exposed to these types of phenomena. The impact of hurricanes like Beryl is not only measured in immediate material damages, but in the prolonged aftermath affecting the economy, health, and resilience of communities. The need for preparation, adaptation, and effective response to natural disasters becomes imperative in a context of accelerated climate change and increased vulnerability to extreme events. It is necessary to act proactively to minimize the risks and costs associated with these phenomena, not only in terms of infrastructure and prevention but also in terms of mitigation policies and adaptation to an ever-evolving climate environment.