Insurance losses surge due to natural disasters rise in H1 of 2024
(MENAFN) Natural disasters have significantly impacted insurance losses globally in the first half of 2024, marking a notable increase compared to recent years. According to a report by Swiss Re, a leading Swiss reinsurance company, insurance losses reached USD60 billion during this period. This figure represents a 62 percent rise over the average losses experienced in the first halves of the past decade. The surge in losses is attributed to an uptick in natural disasters, particularly severe thunderstorms, which have caused substantial damage.
Severe thunderstorms have been particularly devastating, with losses from these events rising by 87 percent year-on-year. These storms, characterized by intense winds, heavy rainfall, and even tornadoes, have had a disproportionate impact on insurance claims. In the United States, losses from thunderstorms accounted for approximately 70 percent of the total global insurance losses. This high proportion is partly due to the extensive coverage of buildings and infrastructure in the U.S., as well as the high value of real estate and rising construction costs driven by inflation. The increased number of insured properties and the higher risks associated with them have exacerbated the financial impact.
Swiss Re, the second largest reinsurer globally after Munich Re, has recommended increased investments in flood protection and stricter building regulations to mitigate the impact of severe storms. These measures are seen as essential for enhancing resilience and reducing future insurance losses. The report highlights the growing need for effective strategies to manage and prevent the escalating costs associated with natural disasters.
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