Global insurance losses from natural disasters will reach $118 billion in 2023, according to a report published by insurance and reinsurance broker Aon on its website.
The report emphasizes that this is the fourth year in a row that insurance losses have exceeded the 21st century average, reflecting the growing impact of natural disasters on the global economy.
Global insurance losses during the year increased by 31% compared to this century’s average, exceeding $100 billion for the fourth consecutive year.
Aon estimates economic losses from natural catastrophes at $380 billion from 398 events, which is 22% more than the average for the century, leaving a gap in protection in 69% of cases, emphasizing the urgent need to expand insurance coverage.
It is emphasized that the surge was caused mainly by severe earthquakes and continuous severe convective storms (SCS) in the United States and Europe. Earthquakes caused the largest economic losses, and strong convective storms were the most expensive for insurers.
The number of natural disasters with large losses reached an unprecedented level in 2023: 66 cases of economic loss of more than $1 billion and 37 cases of insured loss of $37 billion.
Last year, natural disasters led to the tragic deaths of 95 thousand people worldwide, the highest number since 2010. Earthquakes, in particular, were the main cause of these losses.
In addition, 2023 was the hottest year on record with “unprecedented temperature anomalies” affecting 24 countries and territories.
According to Aon CEO Greg Case, it is necessary to increase the resilience of organizations in the face of growing climate and disaster risks.
He emphasized the need for joint efforts by the private and public sectors to accelerate innovation, protect vulnerable communities and address the economic impact of extreme weather.
