Huge spike in insured losses expected
Source: Asia Insurance Review | May 2024
Swiss Re Institute’s latest projections suggest that insured losses could double over the next decade, exacerbated by rising temperatures and more frequent and intense extreme weather events.
According to Sigma 01/2024: Natural catastrophes in 2023, the current scenario underscores the critical need for mitigation and adaptation efforts. It said natural catastrophes, including a major earthquake in Türkiye and Syria, severe convective storms, and widespread urban flooding, pushed insured natural catastrophe losses to $108bn. This escalation continues a 5-7% annual increase in global insured natural catastrophe losses observed since 1994.
The report said over the past three decades, global insured losses from natural disasters have also managed to outstrip global economic growth, with inflation-adjusted insured losses averaging 5.9% annually compared to a 2.7% global GDP growth. This disparity has led to a doubling of the relative loss burden compared to GDP from 1994 to 2023. A