A new record of 142 natural catastrophes led to US$108 billion in insured losses in 2023, according to Swiss Re. Frequency of events is the main driver of insured loss accumulation, with severe convective storms accounting for a record high of US$64 billion in 2023, 85 per cent of the sum originated in the US. Earthquakes in Turkey and Syria and urban floods also contributed to driving insured natural catastrophe losses. Swiss Re estimates insured losses could double in the next decade as extreme weather events become more frequent. Over the past 30 years, global insured losses from natural catastrophes have outpaced economic growth. From 1994 to 2023, insured losses averaged 5.9 per cent per year, while global GDP grew by 2.7 per cent. Moses Ojeisekhoba, Swiss Re's CEO global clients and solutions, notes: "As weather hazards intensify due to climate change, risk assessment and insurance premiums need to keep up with the fast-evolving risk landscape. “Looking ahead, we must focus on reducing the loss potential. Keeping property insurance sustainable and affordable requires a concerted effort by the private industry, the public sector and broader society."
