Managing the ripple effect: a year of catastrophe

Managing the ripple effect: a year of catastrophe 1920 1080 adapt ready

As 2023 drew to an end, we closed the book on a year characterised by global turbulence and disruption. 2023 currently holds the unhappy accolade of being the most expensive year on record for climate change and weather-related disasters, exceeding the previous record set in 2020. Overall global economic losses for natural catastrophes total $110bn, and insured losses were estimated at $43bn at the halfway point of the year, with estimates from Munich Re suggesting these could have topped $300bn.

Major events this year have included a devastating earthquake in Turkey and Syria, the ongoing Russia / Ukraine war and fresh conflict in Israel and Palestine, Hurricanes Otis and Idalia, Storm Daniel and Typhoon Doksuri. These events have caused significant and lasting economic repercussions beyond borders.

It would be tempting to think that the fallout of man-made events and natural catastrophes only impacts those businesses and individuals in their immediate vicinity, but in reality, our increasingly interconnected world makes it inevitable that if an earthquake strikes in one country, its aftershocks will reverberate around the world.

We recently launched our annual Event & Disaster Report, which highlights how the interconnected nature of our world is creating a ‘new normal’ for the mitigation and management of global supply chain and energy risks.

The report details the far-reaching consequences of some of the costliest disasters that hit the world in 2023 and gives us insight into the true economic cost of these events.

Russian invasion of Ukraine ($151.2bn)

The conflict, which has been ongoing since the invasion of Ukraine in February 2022 has cost $151.2bn as of November 2023 and directly impacted 1,045 companies in the region. Tellingly, we also believe 1,468 companies across continental Europe have been indirectly impacted by the conflict.

Supply chains around the world have been significantly impacted by this war, particularly those relating to palladium and semiconductor-grade nickel, critical resources for the automotive and electronics industries.

Over a third of the world’s palladium comes from Russia, the conflict has caused prices to soar, and stoppages and delays in the supply of the metal to major manufacturers such as Toyota, General Motors and Volkswagen. Russia is also the second-biggest supplier of semiconductor-grade nickel and disruption forced Apple, Samsung and Sony to reduce production of electronic devices.

Hurricane Idalia ($10bn)

When Hurricane Idalia ripped through parts of the Southeastern United States in August, it had an enormous impact on the energy sector.  Chevron, the third-largest producer of oil in the US Gulf withdrew staff from three of its platforms in the area, the resulting disruption in crude oil supply affected ExxonMobil, Shell, BP, Valero and Marathon Petroleum.

Turkey and Syria earthquake ($163.6bn)

The 7.8Mw earthquake that struck Turkey and Syria in February was the deadliest in the country’s history claiming over 50,000 lives. The devastating event cost $163.6bn and destroyed a significant proportion of the country’s infrastructure including 446 bridges, 1,275km of railway lines, the Iskenderun Port, a hub for transit automobile trade was forced to close for three months leading to significant losses for automotive companies.            

Canadian Wildfire – Northwest territories ($770mn)

Canada has experienced an unprecedented year for wildfires, with one fire historian likening the widespread event to the ice age, but instead of a creeping drop in temperature, Canadians are living through what he calls the “pyrocene”

The country experienced a significant drop in oil and gas output as the flames forced the sutdown of several gas production plants.  This has led to an increase in prices from $1.96 to $2.54/MMBtu, the impact of which has been felt predominantly across North America.

Typhoon Doksuri ($15.7bn)

Typhoon Doksuri, which swept across the Philippines, Taiwan, China and Vietnam in the Summer is likely to have continuing repercussions around the world.  The region is a major producer of semiconductors which are used in most electronic devices, companies likely to have been impacted by this event include Huawei and the Alibaba Group.

This is a just a very small sample of the vast and connected effects of the events of 2023 on the global supply chain and energy sectors but serves as a reminder to risk managers and underwriters that they need to be in the loop on all major events and be aware of the potential consequences for their own businesses.

Our stats highlight the massive ripple effects of these events, it’s clear that natural catastrophes and man-made disasters on this scale should be a concern for risk managers wherever they’re located. They need to have the data and tools to anticipate, monitor and mitigate these effects in order to grow and remain resilient. We can provide those tools.  Adapt Ready’s highly sophisticated risk intelligence platform aggregates trillions of data points from open and closed sources using our own proprietary correlation engine. The deep global insights we can provide allow underwriters, brokers and risk managers to answer complex questions about the global supply chain, optimise risk selection and pricing and solve accumulation and reinsurance issues in their portfolios.

Adapt Ready Wins Zurich Innovation Championship

Adapt Ready Wins Zurich Innovation Championship 600 600 adapt ready

Adapt Ready on the Cutting Edge of Risk Intelligence for Commercial Insurance

New York, May 3, 2022 — Adapt Ready announced today that the company won the coveted Zurich Innovation Championship. Zurich Insurance Group Ltd specifically cited Adapt Ready’s award-winning risk intelligence platform that provides insurers 360° risk insights in naming the technology company a winner in its 2022 Insurance Innovation Championship.

“We’re thrilled to be chosen out of thousands of contenders for this partnership. The accelerator will take our existing relationship with Zurich to the next level,” said Adapt Ready CEO Shruthi Rao. “This recognition comes at an opportune time as we enter a growth stage funding round. Be it a pandemic or climate change, it is crucial to address supply chain impacts; we look forward to working with Zurich on solving some of the biggest challenges for the industry.”

“The lack of data with context is the biggest hurdle in understanding supply chain risk,” says Adapt Ready CTO Sandeep Chandur. “Adapt Ready uses proprietary technology and comprehensive data about the global supply chain to identify companies and assets at the most significant risk from business interruption.”

“This is especially true when planning for climate change,” says Adapt Ready Advisor Chris Walker. “Modeling for the climate is only as good as the data underneath. Adapt Ready’s platform fills a huge knowledge gap in understanding the complexity to help with climate adaptation and measuring climate risks.”

“Investors who understand the real backbone of our technological advantages are aware that our intellectual property strategy, coupled with the complexity of the problems, creates solid entry barriers,” says Rao. “Similarly, insurers ready to adopt the latest tech can address these challenges and help close the coverage gap for Contingent Business Interruption by unlocking $63 billion in opportunities. Adapt Ready will equip them with best-in-class tools and insights.”


US-based Adapt Ready’s ground-breaking risk intelligence software platform is designed for commercial insurers, brokers, and corporate clients. Our patent-pending technology optimizes external data and delivers insights that enable our clients to manage risk better and enhance their growth and profitability.

Hurricane Ida Slams Into the Energy Sector

Hurricane Ida Slams Into the Energy Sector 600 532 adapt ready

When Hurricane Ida became the fifth strongest hurricane ever to hit mainland US on the 16th anniversary of Hurricane Katrina (with windspeeds reaching 150mph), it struck the energy sector first as always.

The effects were initially obvious with power outages across the entire city of New Orleans as the city’s power supplier, Entergy reported a city-wide loss of power to over 1 million people.

The potential issues only begin at the initial damage caused by the storm to the sector. Business Interruption is already becoming a factor and then the supply chain impacts will be felt as the storm subsides.

You can see from the infographic showing the impact of the storm as of today that 1,610 active offshore oil & gas wells were in the direct path and 549 offshore platforms, with Cox Operating LLC owning/operating 23% of these platforms and 28% of the wells!

Most affected companies:

  • Offshore Assets:
    • Cox Operating LLC: 125 active platforms and 451 active wells exposed to heavy winds
  • Onshore Assets:
    • Hilcorp Energy Company operating a quarter of all onshore wells that are in high-impact zone
  • Offshore & Onshore Assets Combination:
    • Whitney Oil & Gas LLC

As always, the age of the facilities is incredibly important because it was Hurricane Katrina itself in 2005 which altered the design of platforms — requiring increased height to protect them from major storm swells.

In this regard too, Cox Operating LLC leads the pack with 77 of its active platforms that were of fixed type, having been built before 2006 (pre-Katrina) and thus stand lower than the required height of 97 ft, in the path of peak wind speed.

In terms of refineries, we anticipate significant reduction in production capacities, both due to damages/electricity outages and the preemptive closures:

  • ~428 MMcfd natural gas refining capacity potentially at risk
  • 5M barrels petroleum refining capacity at risk
  • Dow Chemicals, Shell Chemicals, ExxonMobil are some of the well-known companies that will have significant reductions in their daily production capacities

The impact to these facilities is going to be felt long into the year, specifically by the immediate consuming industries such as chemical, plastics & rubber. More on this is available in our BI/CBI impacts infographic.

Supply chain and business interruption issues predicted across Louisiana

Supply chain and business interruption issues predicted across Louisiana 600 532 adapt ready

Press Release

For Immediate Release

New York, NY, USA. 31st August 2021.

On the 16th anniversary of Hurricane Katrina causing devastation to the state of New Orleans, Hurricane Ida made landfall. With windspeeds reaching 150mph the Cat 4 storm slammed into Louisiana as the fifth strongest hurricane ever to hit mainland U.S, reversing the flow of the Mississippi river and taking the roof off a hospital in the process.

When Katrina made landfall sixteen years ago on the 29th of August 2005 it was Cat 3 storm and caused massive disruption along the coast of Louisiana, one of the US’s most important industrial corridors, and highlighted the areas vulnerability to flooding. Ida, making landfall just 45 miles west of Katrina’s entry point, has only emphasized this further causing power outages for the entire city of New Orleans as confirmed by Entergy, the city’s power supplier. On top of this, storm surges reaching up to 12 feet (3.65 m) have been reported in the region causing damage and disruption to the energy sector.

Using Adapt Ready’s risk intelligence platform the impacts to business and industry can be seen already as well as the potential costly supply chain and business interruption issues yet to come.

Hurricane Ida has now been downgraded to a tropical storm, but the issues are only just beginning with initial predictions showing the most affected industries currently to be:

  • Chemicals
  • Energy (Offshore & Onshore)
  • Metal Products

Major companies like Westlake Chemicals and Occidental Petrochemicals have been shut down, and these are companies that were already battered by multiple challenges in the past year: declaration of force majeures on their key products like PVC after last year’s record-breaking hurricanes, and Occidental’s Texas facility declaring force majeure earlier this year during Texas’ severe winter storm. Shell’s chemical and refining operations at Narco, Louisiana were shut down during the winter storm and these facilities are again in Ida’s path.

The chemical sector is set to experience some of the biggest impacts to its supply chains, especially the Plastics & Rubber industry that relies on chemicals from the impacted regions, like polymeric MDI (for foams), polyethylene (for packaging materials), butadiene (for tires), PVC and chlorine.

Business interruption and supply chain issues are expected to follow after the initial damage caused by Ida. Our predictions show that in addition to Energy and Chemicals industries, we also foresee impact to the Plastics & Rubber industries, because of the sheer length of time it takes for refineries to get back to full production capacity. More details are available on our infographic below.

If you would like more information as to your specific portfolio requirements in the affected area or just want to be kept up to date with real time hurricane impacts this season, then please contact

About Adapt Ready:

Adapt Ready’s ground-breaking risk intelligence platform delivers new data insights and fills in key gaps with external data, enabling our customers to better manage operational and financial risks, and to enhance their growth and profitability. With our platform, organizations can gain insights from external data tailored to specific situations before, during and after a crisis:

  • Before: Plan for risks by uncovering as many hidden risks as possible
  • During: Mitigate the impact – as events unfold, new data emerges and can inform decisions to reduce the event’s impact
  • After: Adapt to new conditions and refine future business direction
Screenshot of the COVID-19 IRT App

Adapt Ready builds free Covid-19 resources tracker in response to India pandemic crisis

Adapt Ready builds free Covid-19 resources tracker in response to India pandemic crisis 600 531 adapt ready

Press Release

For Immediate Release

Bengaluru, INDIA and New York, NY. 20th May 2021.

While our team in India is fortunate enough to work from home and remotely, not everyone has that kind of flexibility. COVID-19 cases continue to climb at an alarming rate across India – just this week, the country recorded the highest single known daily death toll.

As the cases rise, so do the searches for healthcare amenities. From basic ones to sophisticated ones, the populace has turned to social media for requests, responses, and suggestions. The majority of searches and requests are for the key resources which are becoming increasingly hard to find such as oxygen.

As a small but focused organization, with an expertise that lies in technology, and a prevalence for GIS (Geographical Information Systems) in particular, we decided to see if there was anything we could to help the situation in any way. By using our risk intelligence platform’s ability to capture data and apply machine learning, we have been able to create a COVID-19 resources tracker app.

With less than 1.3% of the population having a Twitter account and considering that at the time of distress it is not easy to scroll through tweets to find the most relevant information, we built this app so that people could access information about the latest available resources (be it oxygen cylinders, ICU beds, ventilators or remdesivir) from vendors closest to them, along with their contact details.

This is an app for social good, which we have made free to use and publicly available at and the app data will be updated frequently.

We are seeking partnerships with government/NGOs and influencers to amplify the communication regarding the tracker – and welcome all to reach out to us for more information.

Please share this with your network and help spread the word, so we can collectively have an impact on fighting COVID-19 and rising to the growing challenge in our country.

Shruthi Rao, CEO of Adapt Ready said “What is happening in India is tragic. As a company, we seek to use our capabilities and add value in any which way we can wherever there is a need – whether it is helping societies, governments or people: all it takes is the will to do it.”


COVID-19 India Resource Tracker is here