Losses in the global natural disaster insurance market reached 50,000 million dollars in the first half of 2023, about 45,500 million euros, according to a report from Swiss Re, the world’s leading reinsurer. The figure marks a level close to twice the average annual losses observed over the previous decade, underscoring a period of heightened risk and rising costs for insurers and reinsurers alike.
In that timeframe, storms in the United States accounted for 68 percent of the global losses, equating to roughly 34,000 million dollars or about 31,800 million euros. This level represents the second highest impact on record since 2011, illustrating how severe weather events continue to shape the insurance landscape across major markets.
The Swiss Re analysis notes a sustained growth trend in insured claims, with an annual increase between 5 percent and 7 percent. This pattern signals ongoing demand for coverage even as industry exposure expands and risk concentrations intensify in densely populated regions.
The report identifies the earthquake event in Turkey and Syria as the single most damaging disaster for the insurance sector during the period, with insured losses reaching 5.3 billion dollars, about 4.8 billion euros. The event highlights how regional seismic hazards can translate into substantial financial impact for insurers operating across international markets.
Flooding in New Orleans, along with other weather-related hazards, illustrates the varied nature of catastrophe risk faced by the sector. The resulting data emphasize the need for robust risk management, resilient infrastructure, and prudent underwriting practices to mitigate losses in future years.
Bertogg stressed that climate change is a driving force behind rising losses, noting that the growing frequency and intensity of disasters in urban centers amplify exposure. This trend challenges risk assessment models and calls for adaptive strategies to protect communities and ensure insurer solvency in an era of shifting hazards.
Jérôme Jean Haegeli, the group’s chief economist, commented that land-use planning in exposed coastal and riparian zones, combined with rapid urban expansion, creates a difficult risk landscape to reverse. The observation underscores the importance of smart development policies, building codes, and targeted prevention measures to reduce potential losses in high-risk areas.
Experts emphasize the value of strengthening protective measures for properties located in regions with high disaster exposure. Such steps are essential to maintain the economic viability of insurance products while supporting fair access to coverage for homeowners and businesses alike.
The Swiss Re report also highlights New Zealand as another region facing substantial insured losses due to natural hazards. Cyclones and typhoons have contributed to a notable, though geographically varied, risk environment for the country in the first half of the year, illustrating how different regions experience distinct catastrophe profiles and capital requirements.
Fire events are identified as a growing risk in multiple regions, including parts of Greece and Italy, driven by extreme heat waves that are increasingly common across Europe, Asia, and the Americas. The broader picture shows that economic losses from natural disasters during the first half of 2023 exceeded 120,000 million dollars, or about 109,000 million euros, representing a 46 percent increase over the ten-year average. This escalation reflects both the expanding scale of events and the economic sensitivity of assets in exposed areas.
Analysts also point to the broader implications for the insurance industry, including the potential impact on premium levels, policy structuring, and risk transfer strategies. The evolving risk environment calls for continued innovation in product design, pricing, and catastrophe modeling to better capture changing exposures and to maintain affordable access to protection for households and businesses across Canada and the United States.
In summary, the first half of 2023 demonstrates a global surge in losses from natural disasters, driven by severe storms in North America, significant seismic events in the Eastern Mediterranean, and expanding exposure in urban zones. The data reinforce the imperative for proactive risk reduction, resilient infrastructure, and prudent insurance practices to navigate an environment marked by greater volatility and higher potential damage.
Note: All figures are presented in local currency equivalents where applicable and reflect insured losses as reported by Swiss Re for the referenced period.