Swiss Re: Natural disasters cost US$108 billion to insurance companies in 2023

280 billion dollars caused natural disasters in 2023 in the world, of which $108 billion was covered by it, according to Swiss reinsurance company Swiss Re, which predicted that their height could double in 10 years. Compared to the previous year, the amount of losses and coverage by insurance companies declined, as in 2022 their amount had increased due to Cyclone Ian. However, the account for insurance companies exceeded the $100 billion threshold for the fourth year in a row, the Swiss company says today (26.3.2024) in Sigma’s annual study, which calculates the cost of disasters and natural disasters. In 2022 damage caused by natural disasters was estimated at $286 billion, while the cost for insurance companies reached $133 billion. “Despite the absence of a historical storm of the size of Cyclone Ian, which hit Florida the previous year, the losses caused by natural disasters in 2023 were serious,” said Jerome Jean Haegeli, the chief economist of Swiss Re, whose statement is published in the announcement accompanying the study. The earthquake in Turkey and Syria was the natural disaster at the highest cost in 2023. The losses that had insurance cover amounted to $6.2 billion, while this earthquake showed in a “dramatic” way the gap in coverage in the world is highlighted in the report. Financial losses reached $58 billion, but the earthquake hit areas with low insurance coverage, as about 90% of the losses were not covered, is noted in the report. The heavy storms have caused insurance losses of $64 billion, a new record, as specified in the study, pointing out that they are now the second source of losses for insurance companies after tropical cyclones. The hails that accompany these storms are the main cause of the losses. The US is raising 85% of the insured damage to storms, but their amount is rising in Europe, exceeding $5 billion a year over the last three years. The risk of hail falls particularly in Germany, Italy and France. With the rise of temperatures and extreme weather phenomena that become “more frequent and intense”, the cost of natural disasters for insurance companies could “double over the next ten years”, warns Swiss Re. SOURCE: RES-SPE