MUNICH: Earthquakes in Turkiye and Syria, storms in the United States and other natural disasters caused an estimated $95 billion in insured losses in 2023, down from the previous year but still above the long-term average, Munich Re said on Tuesday.
The tally of losses from natural catastrophes covered by insurance is less than the $125 billion recorded in 2022 and is also lower than an estimate of $100 billion published last month by rival Swiss Re.
But the 2023 figure from Munich Re, the world’s largest reinsurer, is above a 10-year average of $90 billion and well above a 30-year average of $57 billion.
The quakes in Turkiye and Syria were the most destructive events, causing 58,000 deaths, $50 billion in overall losses and $5.5 billion in losses covered by insurance.
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But what stood out in 2023, Munich Re said, were not single big events but the numerous severe regional storms in the United States and Europe which are increasing as a result of 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,” Ernst Rauch, chief climate scientist at Munich Re, told Reuters. Total losses from natural catastrophes, including those not covered by insurance, were $250 billion in 2023.
That is similar to 2022 and the average of the previous five years, but above 10-year and 30-year trends. North America once again accounted for a big portion of the losses, though the hurricane season was relatively mild.
Scientists have said that a warming of the Earth’s atmosphere will cause more damage in the decades ahead.
Insurers have in some cases been raising the rates they charge as a result of the increasing likelihood of disasters, and in some places have stopped providing coverage.
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