New record of 142 natural catastrophes accumulates to USD 108 billion insured losses in 2023, finds Swiss Re Institute - Seite 2

Moses Ojeisekhoba, Swiss Re's CEO Global Clients & Solutions, says: "As weather hazards intensify due to climate change, risk assessment and insurance premiums need to keep up with the fast-evolving risk landscape. Looking ahead, we must focus on reducing the loss potential. 2023 was the hottest year on record, and the start to 2024 is following suit. Keeping property insurance sustainable and affordable requires a concerted effort by the private industry, the public sector and broader society – not just to mitigate climate risks, but to adapt to a world of more intense weather."

Earthquake costliest disaster, SCS main loss driver in 2023

The most destructive natural catastrophe of the year was the earthquake in Turkey and Syria in February with estimated insured losses of USD 6.2 billion.

2023 was also marked by a high frequency of events as 142 insured natural catastrophes set a new record. Most were of medium severity, resulting in losses of USD 1–5 billion. There were at least 30 such events in 2023, many more than the previous ten-year average (17). Of those events, 21 were SCS, a new high. The number of these medium-severity events has grown by 7.5% since 1994, almost double the 3.9% increase in catastrophes generally.

After tropical cyclones, severe thunderstorms have become established as the second-largest loss-making peril due to exposures caused by urbanisation and economic and population growth. Hailstorms are by far the main contributor to insured losses from SCS, responsible for 50–80% of all SCS-driven insured losses. SCS is the umbrella term for a range of hazards including tornadic and straight-line winds, and large hailstones. SCS are frequently observed weather events that develop when warm humid air rises from the surface of the earth into upper layers of the troposphere, leading to the formation of towering clouds, lightning, and thunder. Meanwhile parcels of cool air rush to the earth's surface, bringing powerful wind gusts, rain, or even hail. Global insured losses from SCS accumulated to a new record of USD 64 billion globally in 2023, 85% originating in the US. SCS-related insured losses were fastest-growing in Europe, exceeding USD 5 billion in each of the last three years. Hail risk in particular is increasing, mainly in Germany, Italy and France.