The Swiss Re Group is the latest large reinsurer to release its data about natural catastrophe damages caused in the first half of 2023. They say severe convective storms caused nearly 70 per cent of all insured losses worldwide in the first half of the year. The damages have so far reached USD $35-billion, USD $34-billion of which are attributed to severe thunderstorms in the United States.
The company says secondary perils have become one of the dominant drivers of insured losses, reporting a trend of between five and seven per cent growth in insured losses, “driven by a warming climate, but even more so by rapidly growing economic values in urbanized settings,” they state.
Insured losses caused by convective storms in the first half of 2023 “are almost twice as high in a six-month period, as the annual average of the last ten years,” they add.
“Besides the impact of climate change, land use planning in more exposed coastal and riverine areas and urban sprawl into the wilderness, generate a hard-to-revert combination of high value exposure in higher risk environments. Protective measures need to be taken for insurance products to remain economical for properties at high risk,” warns Swiss Re Group’s chief economist, Jean Haegeli.
The release further delves into earthquake damages, saying these still cause some of the most severe humanitarian and financial consequences. Turkey and Syria earthquakes in February caused insured losses that are estimated by the reinsurer to come in at USD $5.3-billion. They add that preliminary economic losses are estimated by the World Bank to be around USD $34-billion.
Overall, they concluded that economic losses from natural catastrophes amounted to USD $120-billion, a number that is lower than the USD $123-billion reported in the prior year period, but still 46 per cent above the ten year average.
Related:
- Munich Re publishes global loss figures for the first half of 2023
- Global catastrophe costs compiled in new report
