But although volatile weather conditions can hit anywhere in the world, it is the risk posed to the world's cities that has analysts most worried.
Hurricane Sandy proved that no city is immune to natural disasters, according to Richard Hewston, principal environmental analyst at risk analysis company Maplecroft.
"New York City itself was quite well prepared — the forecasting was spot on. People were evacuated; the businesses had contingency plans," he told CNBC. "It shows that no city is impregnable."
The potential damage caused by a storm on a city is weighing on investors' minds, according to Jacques Gordon, global strategist at LaSalle Investment Management, a real estate investment manager with $47.6 billion of assets under management.
"New York was a big wake-up call, as was the Philippines' typhoon," he told CNBC. "We're not done with this. Volatile weather is going to be a major news story looking ahead."
(Read more: Hurricane Sandy special report)
Cities in danger
As the world's cities get more and more crowded, these weather events — known as "perils" in the insurance industry — pose an increased danger to built-up urban areas. And cities are especially vulnerable to one of the most damaging weather risks: floods.
"If we look at where major cities are located, they are frequently found along coasts and rivers - mainly because of transport links," Peter Hausmann, head of catastrophe peril for Europe at reinsurer Swiss Re, told CNBC.
"Coastal areas are at high risk of the impact from the sea, storms, storm surges, or tsunamis; while cities on the world's largest rivers are at risk of major floods."
And as cities get more crowded, so the risk of damage from natural catastrophes increases.
"You have this growth of mega-cities and a rapid urbanization of smaller cities… which puts an added strain on infrastructure and institutions, which are often poorly prepared to cope with natural hazards," Hewston added.
And it is Asia's megacities that are generating the most concern about their ability to cope with extreme weather.
Japan's Tokyo, Manila in the Philippines and China's Pearl River Delta region — one of the most densely urbanized areas in the world — top Swiss Re's list of cities most at-risk in terms of population. Only one non-Asian city, Los Angeles, made the top 10.
The insurer named the Pearl River Delta — which includes Hong Kong, Shenzhen, Dongguan, Macau and Guangzhou — as number one when looking at the number of people potentially affected by storm, storm surges and river floods.
(Read more: Will typhoon Haiyan derail Philippines' economy?)