Swiss Re has revealed that insurers’ costs have been increased by natural disasters in 2022, with inflation causing a further surge in the bill. The economic losses caused by natural disasters amounted to $275 billion, down 5.8% on the previous year, but of these losses, $125 billion were covered by insurance. Swiss Re has warned of the likelihood of further rises in the future due to climate change. The replacement cost of buildings in the US has risen by an estimated 40% since the beginning of 2020. Hurricane Ian, a category-four storm that caused more than 150 deaths, was last year’s costliest event, resulting in estimated insured losses of $50-65 billion. In other natural disasters, flooding in eastern Australia resulted in insured losses of $4.3 billion, while Brazil experienced below-average monsoon rains, which affected crop yields, resulting in insured losses of $1 billion, particularly for soybean and corn crops.
Reinsurer Swiss Re has warned that insurers’ costs have been increased by natural disasters in 2022, with inflation causing a further surge in the bill. The Zurich-based group revealed that economic losses caused by natural disasters in 2022 were $275 billion, down 5.8% on the previous year’s $303 billion. Of these losses, $125 billion were covered by insurance, up 3.3% on 2021. Inflation drove up compensation costs, particularly for homes, buildings, and vehicles damaged by natural disasters. Swiss Re also said that the replacement cost of buildings in the US has risen by an estimated 40% since the beginning of 2020. Hurricane Ian, a category-four storm that caused more than 150 deaths, was last year’s costliest event, resulting in estimated insured losses of $50-65 billion. Each region of the world suffered a significant event, with northwestern Europe experiencing insured losses of over $4 billion from storms Eunice, Dudley, and Franklin in February 2022.
Swiss Re has reported that global losses from floods were above average, with eastern Australia experiencing the biggest natural catastrophe claims event ever recorded in the country, resulting in insured losses of $4.3 billion. In Brazil, below-average monsoon rains affected crop yields, resulting in insured losses of $1 billion, particularly for soybean and corn crops.
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