New Record of 142 Natural Catastrophes Amounts to USD 108 Billion Insured Losses in 2023, Swiss Re Institute Reports

In 2023, the Swiss Re Institute observed a new high in insured losses from natural catastrophes, totaling USD 108 billion. This marked the fourth consecutive year that losses exceeded USD 100 billion, with a substantial portion attributed to a devastating earthquake in Turkey and Syria, which alone accounted for insured losses of approximately USD 6.2 billion.

The report highlighted the significant role of severe convective storms (SCS), particularly in the United States and increasingly in Europe, as the primary contributors to the record loss amount. Insured losses from SCS reached a new peak of USD 64 billion, underlining the escalating threat from such events.

According to the Swiss Re Institute, this upward trend in insured natural catastrophe losses, which has averaged an annual growth of 5-7% since 1994, is partly fueled by climate change. It is expected that insured losses could double within the next decade as extreme weather events become more frequent and intense due to rising global temperatures.

The institute also noted that global insured losses have grown at a rate more than double that of global GDP over the past three decades. This gap highlights the increasing relative cost burden of natural catastrophes compared to economic growth, underscoring the urgency for adaptation and mitigation measures to manage future risks.

Swiss Re emphasized the necessity for the insurance industry to adapt to the rapidly evolving risk landscape through accurate risk assessment and appropriately priced insurance premiums. Collaboration across private and public sectors, as well as among broader society, is crucial for reducing loss potential and ensuring the sustainability of property insurance amid escalating weather hazards.