Natural Catastrophe Insured Losses Continue to Exceed $100 Billion, Swiss Re Institute Says
By Pierre Bertrand
Global insured losses from natural catastrophes last year exceeded $100 billion for the fourth consecutive year and losses could increase going forward as temperatures rise and weather events become more intense and frequent, according to the Swiss Re Institute.
Swiss Re Institute said Tuesday that 2023 was marked by a record 142 natural catastrophes, which caused $108 billion in insured losses around the world. Natural catastrophes in 2022 caused $133 billion in insured losses, it said.
Damage caused by severe convective storms reached a record $64 billion which, along with urban flooding and the earthquake in Turkey and Syria, drove the losses last year, the institute's report said.
The majority of storm-related losses from damage caused by high winds or hail came from the U.S., while such losses were growing fastest in Europe, the report said.
The number of medium-severity events, those that generate losses between $1 billion and $5 billion, grew 7.5% since 1994, outpacing the 3.9% increase in catastrophes generally. In 2023 there were at least 30 such events compared with the previous 10-year average of 17.
Last year's toll reaffirms the 5% to 7% annual growth trend in insured natural catastrophe losses since 1994. Over the past 30 years, natural catastrophe inflation-adjusted insured loss growth averaged 5.9% a year, outstripping global GDP growth, the report said.
"Swiss Re Institute estimates that insured losses could double within the next ten years as temperatures rise and extreme weather events become more frequent and intense. Therefore, mitigation and adaptation measures are key to reduce natural catastrophe risk," it said.
Last year's earthquake in Turkey and Syria in February was the costliest single event in 2023, causing an estimated $6.2 billion in insured losses, the report said.
Write to Pierre Bertrand at pierre.bertrand@wsj.com
(END) Dow Jones Newswires
March 26, 2024 07:07 ET (11:07 GMT)
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