Global Nat CAT insured losses reach estimated $52bn in 1H 2023
Source: Middle East Insurance Review | Aug 2023
The first six months of 2023 featured above average natural catastrophe losses as the National Oceanic and Atmospheric Administration declared the official arrival of El Niño1 which was poised to bring further influence on global weather/climate events through the end of the year, according to Gallagher Re’s H1 2023 Natural Catastrophe Report, published last month. Total direct economic losses from natural hazards were preliminarily estimated at $138bn, said the report.
The cost covered by private insurance or public insurance entities tallied $52bn, marking a protection gap of 63% ($86bn). The first half totals for solely weather/climate events (excluding earthquakes or other non-atmospheric-driven perils) were $92bn (economic) and $46bn (insured). These totals, which may be rounded in some cases, are subject to change as loss development occurs and new data is obtained in the weeks and months ahead.
The severe convective storm peril was highly dominant for the insurance industry in 1H2023. A very active multi-month pattern spawned a prolific series of outbreaks across the US that led to a minimum of $34bn in insured losses, representing 65% of all global 1H insured losses. For all perils, the US accounted for 76% of global insured losses; but just 38% of global economic losses. Thunderstorms in Europe during June brought a billion-dollar insurance bill to parts of Germany and France.
Other parts of the world also experienced significant natural hazard activity. The death toll from the February sequence of earthquakes in Turkey and Syria rose above 59,250 as the insured cost topped $5bn. New Zealand’s two costliest weather events on record led to at least $2.3bn in combined insured losses. Italy’s Emilia-Romagna region experienced rainfall in May that left a minimum direct economic toll of $9.7bn. M