Natural disasters in 2023 led to $250 billion in economic and $95 billion in insured losses
Globally, natural disasters in 2023 resulted in economic losses of about $250 billion (the same as last year), with insured losses of $95 billion (previous year: $125 billion). Total losses were in line with the five-year average, while insured losses were slightly below the average figure of $105 billion.
Economic losses from natural disasters were mostly due to severe storms, with 76% of total losses due to weather, while 24% had geophysical causes. The series of earthquakes in southeastern Turkey and Syria in February was certainly the most devastating natural disaster of the year. Munich Re said 58,000 people died in the event and the total damage was about $50 billion, making it the year’s costliest natural disaster.
Unfortunately, the number of deaths caused by natural disasters has increased to 74,000 in 2023, well above the annual average of the last five years (10,000).
“After years of relative calm, a series of devastating earthquakes led to humanitarian catastrophes. Around 63,000 people (85% of total deaths for the year) will lose their lives due to such geophysical hazards in 2023 – more than at any time since 2010,” Munich Re said.
According to a report by reinsurer Munich Re, thunderstorms in North America and Europe in 2023 were “more destructive than ever before,” causing $76 billion in total losses and $58 billion in insured losses.
Such extensive storm damage has never been recorded in the US or Europe. In North America, losses totaled around $66 billion, of which $50 billion were insured, while in Europe the figure was $10 billion (€9.1 billion), of which $8 billion (€7.3 billion ) were insured.
A large body of research shows that climate change is contributing to severe hailstorms. Similarly, the statistics of losses from thunderstorms in North America and other regions are on the rise.
“The year 2023 was again characterized by exceptionally high insurance losses from natural disasters, despite the fact that there were no extreme individual losses,” says Thomas Blank, member of the board of Munich Re. “This highlights the important role that insurance plays in disaster mitigation. Detailed data and an in-depth understanding of changes in risk remain key factors in designing insurance coverage to protect people from natural disasters.”
“Another important aspect is prevention. The death toll from this year’s devastating earthquakes is a wake-up call to better protect people by adapting construction methods.”