Swiss Re estimates $275 global losses from natural disasters

Zurich, Mar. 22, (dpa/GNA) – Swiss reinsurance company Swiss Re estimates losses from natural disasters around the world last year at $275 billion. Less than half of that – $125 billion – was covered by insurance, the company announced on Wednesday.

It was the second year in a row that the mark of more than $100 billion in insured losses was broken. On average, the sum had risen by 5% to 7% per year over each of the past few years.

The most expensive event by far was Hurricane Ian in Florida, with insurance losses of $50 to $65 billion. According to their records, it was the most expensive catastrophe after hurricane Katrina in 2005, which hit the US city of New Orleans and the surrounding area.

Swiss Re also cites hail damage in France (more than $5 billion) and winter storms in north-eastern Europe (more than $4 billion).

Inflation has driven up costs, the company said. Increased prices had made buildings, vehicles and the like more expensive, thereby also driving up insurance claims.

Natural disasters are often more severe in poorer regions of the world and usually claim more lives there than in industrialized countries. In richer countries, however, the infrastructure is more expensive. That, along with the fact that more people are insured, is why the losses are higher there.

GNA