Insurance losses due to natural disasters have reached record levels

The average annual total value of insurance losses for the risk of natural catastrophes reached a record value of $133 billion. This estimate is contained in a new analytical report by the catastrophe risk modeling company Verisk.

“The insurance industry must be prepared not only for total insured losses from natural catastrophes to exceed $100 billion each year, but also for probable annual losses exceeding $200 billion,” the report said.

According to a Verisk report, 70% of total losses are from wildfires, thunderstorms and floods, with insured losses accounting for no more than 30% of economic losses.

“According to the company’s estimates, annual economic losses could exceed $400 billion. This is a staggering figure that highlights the gaps in insurance protection that exist around the world,” the report said.

Earlier, the Internet resource UkrStrahuvannya, citing Bloomberg data, reported that insurance losses from natural disasters amounted to $125 billion in 2022 compared to the average cost of $81 billion over the past 10 years and $110 billion over the past 5 years.

Source: ukrstrahovanie.com.ua