Earthquakes in Türkiye and Syria, wildfires in Hawaii and other natural catastrophes have caused more than $100 billion in insured losses in 2023, down from the previous year but still well above normal, reinsurance giant Swiss Re estimated Thursday.
Insured losses from severe thunderstorms reached an all-time high of $60 billion in 2023, while the devastating February earthquakes in Türkiye and Syria were the costliest natural catastrophes for the year, it said.
"With 2023 expected to be the warmest year on record, the effects of climate change are becoming apparent," said the company.
Nevertheless, the estimated total amount of insured losses in 2023, at $108 billion, is down by 23% from $141 billion recorded in 2022. It will pass the $100-billion threshold for the fourth year running.
The tally is one of the first estimates by a major insurer for the year. Total economic losses from natural catastrophes, including those that are not insured, were estimated at $269 billion, a 9% drop from 2022.
Insurers have been raising the rates they charge as a result of increasing disasters and in some places, they have stopped providing coverage.
Natural catastrophes accounted for the overwhelming majority of the insured and total losses.
Swiss Re noted the impact of a rising number of low-to-medium severity events.
"The cumulative effect of frequent, low-loss events, along with increasing property values and repair costs, has a big impact on an insurer's profitability over a longer period," Swiss Re's Group chief economist Jerome Haegeli said.
"The high frequency of severe thunderstorms in 2023 has been an earnings test for the primary insurance industry," he added.
Swiss Re has calculated that losses from severe thunderstorms have steadily increased by 7% annually over the last 30 years.
Severe thunderstorm losses in 2023 were more than double the previous 10-year average of $27 billion.
The United States has been particularly vulnerable to severe thunderstorms, experiencing 18 events causing more than $1 billion in insured losses this year and total insured losses surpassing $50 billion for the first time.