Earthquakes and hurricanes cause $95 billion in insured losses in 2023 - analysis
Kyiv • UNN
Insured losses from natural disasters in 2023 totaled $95 billion dollars
Earthquakes in Turkey and Syria, hurricanes in the U.S. and other natural disasters caused insured losses in 2023 estimated at $95 billion, down from the previous year but still above the multi-year average, Reuters reported citing data from Munich Re, the world's largest reinsurance company, on Tuesday, writes UNN.
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The amount of natural catastrophe losses covered by the insurance is less than the $125 billion recorded in 2022 and below the $100 billion estimate released last month by rival Swiss Re.
But the 2023 figure from Munich Re, the world's largest reinsurance company, is above the 10-year average of $90 billion and well above the 30-year average of $57 billion.
The earthquakes in Turkey and Syria were the most devastating events, killing 58,000 people, with total damage totaling $50 billion and insurance-covered losses totaling $5.5 billion.
But according to Munich Re, 2023 stood out not for individual major events, but for the many serious regional storms in the U.S. and Europe that are intensifying as a result of climate change.
"The background noise has gotten louder. Loss events, previously considered minor and recognized as less significant 'side risks,' have become the main cause of losses," Ernst Rauch, chief climate scientist at Munich Re, told Reuters.
Total losses from natural catastrophes, including those not covered by insurance, totaled $250 billion in 2023. This is similar to 2022 and the average of the previous five years, but above the 10-year and 30-year trends.
North America again accounted for most of the losses, although the hurricane season was relatively mild.
Scientists have said that the warming of the Earth's atmosphere will cause more damage in the coming decades.
Insurers have in some cases increased the rates they charge as a result of the increasing likelihood of natural disasters, and in some places have discontinued coverage.
