Natural disasters, cost 280 billion dollars, 108 billion were covered by insurance companies

2024-03-27 11:01:08Kosova&Bota SHKRUAR NGA REDAKSIA VOX

Natural disasters, cost 280 billion dollars, 108 billion were covered by

Natural disasters caused $280 billion in losses in 2023 worldwide, $108 billion of which were covered by insurance companies, according to Swiss reinsurance company Seiss Re. The amount of claims and coverage from insurance companies decreased compared to a year ago as in 2022 their amount had increased due to Hurricane Ian.

But the bill for insurers passed the $100 billion mark for the fourth consecutive year, the Swiss firm said in its annual Sigma study, which calculates the cost of catastrophes and natural disasters. In 2022, damages caused by natural disasters were estimated at 286 billion dollars, while the cost to insurance companies reached 133 billion dollars.

The earthquake in Turkey and Syria was the costliest natural disaster in 2023. Insured losses reached $6.2 billion and the earthquake dramatically showed the world's coverage gaps, the report said. Economic losses totaled $58 billion, but the earthquake hit areas with low insurance coverage, as about 90 percent of losses were not covered, the report notes.

Severe storms caused insured losses of $64 billion, a new record, the study said, noting that they are now the second biggest source of losses for insurers after tropical cyclones.

The hail that accompanies these storms is the main cause of losses. The U.S. collects 85% of insured hurricane losses, but the amount is rising in Europe, exceeding $5 billion annually over the past three years. The risk of hail increases especially in Germany, Italy and France.

With temperatures rising and extreme weather events becoming more frequent and intense, the cost of natural disasters to insurers could double over the next ten years, Swiss Re warns.


Video