Page 50 - Insurance Times May 2024
P. 50
PRESS RELEASE
New record of 142 natural catastrophes
accumulates to USD 108 billion insured
losses in 2023, finds Swiss Re Institute
A devastating earthquake in Turkey and Syria, requires a concerted effort by the private industry, the public
sector and broader society not just to mitigate climate
severe convective storms (SCS) and large-scale
risks, but to adapt to a world of more intense weather."
urban floods were the main events driving insured
natural catastrophe losses to USD 108 billion in
2023, reaffirming the 57% annual growth trend in global Earthquake costliest disaster, SCS main
insured natural catastrophe losses since 1994. Swiss Re loss driver in 2023
Institute estimates that insured losses could double within The most destructive natural catastrophe of the year was
the next ten years as temperatures rise and extreme the earthquake in Turkey and Syria in February with
weather events become more frequent and intense. estimated insured losses of USD 6.2 billion.
Therefore, mitigation and adaptation measures are key to
reduce natural catastrophe risk. 2023 was also marked by a high frequency of events as 142
insured natural catastrophes set a new record. Most were
Global insured losses from natural catastrophes outpaced of medium severity, resulting in losses of USD 15 billion.
global economic growth over the past 30 years: From 1994 There were at least 30 such events in 2023, many more than
to 2023, inflationadjusted insured losses from natural the previous ten-year average (17). Of those events, 21
catastrophes averaged 5.9% per year, while global GDP were SCS, a new high. The number of these medium-severity
grew by 2.7%. In other words, over the last 30 years, the events has grown by 7.5% since 1994, almost double the
relative loss burden compared to GDP has doubled. 3.9% increase in catastrophes generally.
Jérôme Jean Haegeli, Swiss Re's Group Chief Economist, says: After tropical cyclones, severe thunderstorms have become
"Even without a historic storm on the scale of Hurricane Ian, established as the second-largest loss-making peril due to
which hit Florida the year before, global natural catastrophe exposures caused by urbanisation and economic and
losses in 2023 were severe. This reconfirms the 30-year loss population growth. Hailstorms are by far the main
trend that's been driven by the accumulation of assets in contributor to insured losses from SCS, responsible for 50
regions vulnerable to natural catastrophes. In the future, 80% of all SCS-driven insured losses. SCS is the umbrella term
however, we must consider something more: climate- for a range of hazards including tornadic and straight-line
related hazard intensification. Fiercer storms and bigger winds, and large hailstones.
floods fuelled by a warming planet are due to contribute
more to losses. This demonstrates how urgent the need for SCS are frequently observed weather events that develop
action is, especially when taking into account structurally when warm humid air rises from the surface of the earth
higher inflation that has caused post-disaster costs to soar." into upper layers of the troposphere, leading to the formation
of towering clouds, lightning, and thunder. Meanwhile
Moses Ojeisekhoba, Swiss Re's CEO Global Clients & parcels of cool air rush to the earth's surface, bringing
Solutions, says: "As weather hazards intensify due to climate powerful wind gusts, rain, or even hail. Global insured losses
change, risk assessment and insurance premiums need to from SCS accumulated to a new record of USD 64 billion
keep up with the fast-evolving risk landscape. Looking ahead, globally in 2023, 85% originating in the US. SCS-related
we must focus on reducing the loss potential. 2023 was the insured losses were fastest-growing in Europe, exceeding
hottest year on record, and the start to 2024 is following USD 5 billion in each of the last three years. Hail risk in
suit. Keeping property insurance sustainable and affordable particular is increasing, mainly in Germany, Italy and France.
46 May 2024 The Insurance Times
