$95bln insurance losses from natural disasters in ’23
Natural disasters, including earthquakes in Turkey and Syria and storms in the United States, resulted in an estimated $95 billion in insured losses in 2023, as reported by Reuters citing Munich Re report on Tuesday. This figure is lower than the previous year but still exceeds the long-term average.
Insured losses from natural disasters in 2023 were less than the $125 billion reported in 2022 and also fell short of Swiss Re’s estimated $100 billion published last month.
The 2023 insured loss figure reported by Munich Re, the world’s leading reinsurer, surpasses the 10-year average of $90 billion and greatly exceeds the 30-year average of $57 billion.
The earthquakes in Turkey and Syria were the deadliest, resulting in 58,000 fatalities and $50 billion in total losses, with insurance covering $5.5 billion.
Munich Re also highlighted that the standout events of 2023 were not isolated incidents but rather the numerous intense regional storms in the U.S. and Europe, which are on the rise due to climate change.
“The background noise has become louder. Loss events that were previously regarded as secondary and acknowledged as less significant ‘side risks’ have become a major loss driver,” stated the chief climate scientist at Munich Re, Ernst Rauch.
In 2023, total losses from natural disasters, inclusive of uninsured losses, amounted to $250 billion, which aligns with the losses in 2022 and the five-year average, but it surpasses the trends over 10 and 30 years.
Despite a relatively mild hurricane season, North America still contributed significantly to the losses.
According to scientists, the ongoing warming of the Earth’s atmosphere is expected to result in increased damage over the coming decades.
In response to the escalating risk of disasters, some insurance companies have increased their premiums, and in certain areas, they have discontinued coverage.
