Get 40% Off
🔥 This hedge fund gained 26.16% in the last month. Get their top stocks with our free stock ideas tool.See stock ideas

Insurer losses climb to $50 bn from natural disasters in first half - Swiss Re

Published 08/09/2023, 10:43 AM
© Reuters

Investing.com -- The global insurance industry's losses from natural catastrophes rose to $50 billion in the first half, according to a new report from Swiss Re.

In a statement on Wednesday, the Zurich-based reinsurance group said the effect of a warming climate is "evident in increasingly extreme weather events."

A series of widespread storms that slammed into the U.S. accounted for more than two-thirds of the half-year claims, the study noted.

Severe weather marked by thunder, lightning, heavy rain, hail, strong winds, and sudden temperature changes led to $34B in insured losses in the U.S. alone. Ten events each caused losses of $1B or more, compared to a yearly average of six events over the past decade. The state most affected was Texas, Swiss Re said.

The report added that extensive flooding caused by prolonged rainfall in Italy's Emilia-Romagna region in May led to expected insured losses of over $600 million -- the costliest weather-related event in the country since 1970.

Heatwaves and dry conditions in southern Europe since early July have also aggravated wildfires, Swiss Re flagged. However, it said that it remains too early to estimate the economic damage.

"Besides the impact of climate change, land use planning in more exposed coastal and riverine areas, and urban sprawl into the wilderness, generate a hard-to-revert combination of high value exposure in higher risk environments," said Swiss Re Chief Economist Jérôme Jean Haegeli.

"Protective measures need to be taken for insurance products to remain economical for such properties at high risk. It is high time to invest in more climate adaption."

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The overall economic cost from natural catastrophes, including a deadly earthquake in Turkey and Syria in February, amounted to $120B in the first half, the report projected. That was down slightly from $123B in the prior-year period, but still 46% above the ten-year average.

Latest comments

Yes, massive inflation and rising costs of goods and services makes things cost more.
You noticed that the majority of claims were in the U.S. It's expensive to rebuild here. I perform interior remodeling. My doctor got mad when he found out I earn more than he does.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.