Swiss Re report state that in 2022 for the second consecutive year, global insured losses from natural catastrophes topped £80bn (US$100bn).
From the giant global reinsurer, figures show that UK losses from natural catastrophes were approximately £730m in 2022 with insured losses totalling £650m. The protection gap of 17% was below the 25% registered for the 10-year period between 2013 and 2022.
Although Swiss Re said the UK’s protection gap was relatively low, it believes natural catastrophe losses are a growing threat.
It said: “In July 2022, the UK recorded its highest temperature ever at 40.3°C in Coningsby, Lincolnshire. Higher average temperatures due to climate change are increasing the intensity and frequency of heatwaves during the summer and the volatility of existing weather patterns in the winter.
“This results in more severe storms and increased rainfall, as witnessed in February 2020, when many rivers exceeded their capacity due to heavy rainfall from storms Ciara and Dennis.
“River and flash flooding are likely to become more frequent. Sea level rise is also a threat to the UK’s low-lying coastline in eastern and southern England and north Wales.”