In America, Hurricane Ian Preliminary Insured Losses Falling between $50 billion and $65 billion, it caused a total economic loss of $112 billion, making it one of the costliest natural disasters ever recorded.
According to Gallagher Re’s natural catastrophe report, the country experienced a $9 billion drought in crop insurance claims and three severe convective storm (SCS) outbreaks, all of which helped make 2022 the 15th consecutive year with total insured SCS losses. At more than $10 billion, SCS losses exceeded $20 billion for the 8th year since 2010.
“The financial cost of natural hazards continues to rise, and we further recognize that the persistently high global protection gap – 61% in 2022 – means there is greater opportunity to help people prepare before and after a disaster strikes,” said Gallagher Re. Chief Scientific Officer Steve Bowen. “As catastrophic losses become increasingly costly, we again see the interconnectedness of climate change, exposure growth and social inflation as critical issues that will ultimately increase loss costs.
“The increasing severity – and in some cases frequency – of ‘secondary’ risk events present a multifaceted and complex challenge to (re)insurers when it comes to risk protection and mitigation.”
Outside the United States, Gallagher Re’s natural disaster report revealed that monsoon floods, which damaged 2.3 million homes and affected 33 million people in 90 districts of Pakistan, caused more than 1,700 deaths, and were the costliest natural disaster event in 2022. National Disaster Management Authority.
Historic floods affected many parts of Africa, while the effects of a third consecutive La Niña brought record rainfall to parts of eastern Australia and nearly $5 billion in payouts, according to the Insurance Council of Australia, Gallagher Re report.
“The fingerprints of climate change will be visible in every major weather and climate event by 2022, again highlighting the urgency to implement proper planning and investment strategies that limit risk to life and property,” Bowen said. “The impacts of climate change on daily weather and climate events are becoming clearer and better understood.
“While we are still trying to account for the uncertainties in how climate change may affect events on a regional and risk basis, it is clear that the impacts of the event are not future tense. They are already being felt today.
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