New record of 142 natural catastrophes accumulates to USD 108 billion insured losses in 2023, finds Swiss Re Institute

Swiss Re Ltd / Key word(s): Research Update New record of 142 natural catastrophes accumulates to USD 108 billion insured losses in 2023, finds Swiss Re Institute 26.03.2024 / 10:00 CET/CEST Global insured losses from natural catastrophes in 2023 exceeded USD 100 billion for fourth consecutive year with earthquake in Turkey and Syria being the costliest catastrophe (estimated insured losses of USD 6.2 billion) Frequency of events is main driver of insured loss accumulation, with severe convective storms (SCS) accounting for record high USD 64 billion in 2023; 85% of SCS-losses in 2023 originated in the US, while growing the fastest in Europe With climate change-induced hazard intensification likely increasing losses in the future, adaptation measures become key to reduce loss potential Zurich, 26 March 2024 – A devastating earthquake in Turkey and Syria, severe convective storms (SCS) and large-scale urban floods were the main events driving insured natural catastrophe losses to USD 108 billion in 2023, reaffirming the 5–7% annual growth trend in global insured natural catastrophe losses since 1994. Swiss Re Institute estimates that insured losses could double within the next ten years as temperatures rise and extreme weather events become more frequent and intense. Therefore, mitigation and adaptation measures are key to reduce natural catastrophe risk. Global insured losses from natural catastrophes outpaced global economic growth over the past 30 years: From 1994 to 2023, inflation-adjusted insured losses from natural catastrophes averaged 5.9% per year, while global GDP grew by 2.7%. In other words, over the last 30 years, the relative loss burden compared to GDP has doubled. Jérôme Jean Haegeli, Swiss Re's Group Chief Economist, says: "Even without a historic storm on the scale of Hurricane Ian, which hit Florida the year before, global natural catastrophe losses in 2023 were severe. This reconfirms the 30-year loss trend that's been driven by the accumulation of assets in regions vulnerable to natural catastrophes. In the future, however, we must consider something more: climate-related hazard intensification. Fiercer storms and bigger floods fuelled by a warming planet are due to contribute more to losses. This demonstrates how urgent the need for action is, especially when taking into account structurally higher inflation that has caused post-disaster costs to soar."