Swiss reinsurer assumes insured losses from natural catastrophes of 108 billion dollars
Swiss reinsurer Swiss Re expects insured losses from storms, floods, heavy rain and other natural disasters to total 108 billion dollars this year. This would be the fourth year in a row above the 100 billion dollar mark, but probably 23 percent lower than in 2022, as the company announced on Thursday. The total economic losses are estimated at 269 billion dollars.
According to the figures, severe storms were responsible for insured losses amounting to 60 billion dollars - a new record. The most expensive natural disaster of the year so far for insurers was the earthquake in Syria and Turkey in February. The insured losses alone amounted to around six billion dollars.
According to the figures, events with low or medium damage amounts are also playing an increasingly important role. Together with rising property and repair costs, this could have a major impact on insurers' profitability over a longer period of time.
"The effects of climate change are becoming visible," explained Swiss Re, pointing out that 2023 is likely to be the warmest year since records began. The reinsurer regularly points to the increasing number of floods and storms.
Meanwhile, the hurricane season in the North Atlantic, which is normally very costly for insurers, has so far been below average. However, Hurricane Otis, which hit Mexico in particular in October, could still leave insurers with a large bill.
The figures quoted are a forecast. Swiss Re will not publish the actual loss amounts until next year.
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- Despite the lower projected insured losses compared to 2022, the Swiss reinsurer Swiss Re still expects to pay out over $100 billion due to natural disasters this year.
- As a result of severe storms and other natural catastrophes, the Dollar-denominated insured losses are projected to reach an unprecedented $60 billion, surpassing previous records.
- Given the increasing number of natural disasters, such as storms and floods, and the associated repair costs, the Swiss reinsurer warns of potential long-term impacts on insurer profitability.
- In contrast to the North Atlantic hurricane season, which has been relatively calm so far, Hurricane Otis, which hit Mexico in October, could still lead to significant insured losses in the billions.
Source: www.ntv.de
