Quakes, storms caused $95 billion in insured losses in 2023: Report

The year 2023 witnessed a series of devastating natural disasters, with insured losses estimated at $95 billion, according to Munich Re, the world's largest reinsurer.

The year 2023 witnessed a series of devastating natural disasters, with insured losses estimated at $95 billion, according to Munich Re, the world's largest reinsurer.

This figure marks a decrease from the $125 billion in insured losses recorded in 2022 but remains significantly above the 10-year average of $90 billion and well beyond the 30-year average of $57 billion.

Among the catastrophic events, the earthquakes that struck Turkey and Syria emerged as the most destructive, claiming 58,000 lives and resulting in $50 billion in overall losses. Insurance coverage accounted for $5.5 billion of these losses. However, Munich Re highlighted that it was not just singular massive incidents that defined the year's damage toll.

The total losses from natural catastrophes in 2023, including uninsured damages, reached $250 billion. This amount aligns with the losses of 2022 and the five-year average preceding it. Despite a relatively mild hurricane season, North America bore a substantial share of these losses.

The insurance industry is facing the reality of a warming Earth, which scientists warn will lead to increased destruction in the coming decades. In response, insurers are adjusting their strategies, with some raising premium rates to reflect the heightened risk of disasters. Others have taken more drastic measures, such as withdrawing coverage in certain high-risk areas.