Record-breaking Nat Cat causes $108b insured losses in 2023, says Swiss Re

Over the past 30 years, insured losses from Nat Cat have outpaced global economic growth

Insured natural catastrophe losses hit $108b in 2023 due to events like earthquakes in Turkey and Syria, severe storms, and urban floods, reflecting a 5% to 7% annual growth trend since 1994, according to Swiss Re Insitute.

A record 142 insured natural catastrophes occurred last year, mostly medium-severity events costing $1b to $5b each. Severe convective storms (SCS) emerged as the main loss driver, with hailstorms responsible for 50% to 80% of SCS-driven insured losses.

Swiss Re Institute warns that insured losses may double within a decade due to rising temperatures and more frequent extreme weather events, urging for mitigation and adaptation measures.

Over the past 30 years, insured losses from natural catastrophes have outpaced global economic growth, doubling relative to GDP. 

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Swiss Re highlights climate-related hazard intensification, emphasizing the urgency for action amid escalating post-disaster costs and structural inflation.

The earthquake in Turkey and Syria was the costliest disaster, with insured losses of $6.2b in 2023. 

Increased exposures from economic and population growth, urbanization, and climate change effects are fueling SCS-related losses, especially in Europe and the US. 

To mitigate losses, adaptation measures such as enforcing building codes and collaborating with insurers and the public sector are crucial.