by Alexander Hübner and Tom Sims

MUNICH (Reuters) – Natural catastrophes led to an estimated $95 billion in insured losses in 2023, down from the previous year but still above the long-term average, the world’s largest reinsurer said on Tuesday Munich Re.

Total insured losses for 2023 are lower than the $125 billion recorded in 2022, and are also lower than the $100 billion estimate released last month by reinsurer Swiss Re.

The figure calculated by Munich Re is nevertheless higher than the 10-year average of $90 billion and well above the 30-year average of $57 billion.

The earthquakes in Turkey and Syria were the most destructive disasters, responsible for 58,000 deaths, $50 billion in damages and $5.5 billion in insured losses.

Munich Re emphasizes, however, that it is not these major one-off events that marked 2023, but the violence and frequency of regional storms in the United States and Europe, which are increasing due to climate change.

“Events triggering insured losses previously considered less significant and classified as ‘secondary risks’ have become a major loss driver,” Ernst Rauch, chief climatologist at Munich Re, told Reuters.

Total losses due to natural disasters, including uninsured losses, reached $250 billion in 2023, the same as in 2022 and in line with the average of the last five years. The figure nevertheless remains higher than the 10 and 30 year average.

The majority of losses were once again concentrated in North America, even though the hurricane season was relatively mild.

Researchers have warned that the extent of the damage will increase as the climate warms.

In some cases, insurers have increased their rates to reflect the higher probability of catastrophes, and are stopping insuring certain areas that are too risky.

(Reporting Alexander Huebner and Tom Sims; Corentin Chappron, edited by Blandine Hénault)

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