Extreme weather events has resulted in a second consecutive year estimated insured losses at US$115bn to date of natural catastrophe insured losses according to data from Swiss Re Institute.
The extreme weather events that drive the losses include Hurricane Ian, the winter storms in Europe, flooding in Australia and South Africa as well as hailstorms in from and in the US.
This year is the second consecutive year in which the estimated insured losses total more than US$100bn, continuing the trend of a 5–7% average annual increase over the past decade. The re/insurance industry covered roughly 45% of the economic losses this year, indicating a large protection gap across the world.
Thierry Léger, group chief underwriting officer, said: “2022 has been another year of increased natural catastrophe loss activity, and demand for insurance is growing as the protection gap remains vast. To enable the insurance industry to keep up with increasing volatility and demand, it will be key to model evolving frequency and severity trends. Pricing needs to reflect the effective risk. In this complex environment, Swiss Re is ready to support clients with our strong balance sheet, risk capacity and expertise.”