Hurricane Ian in Florida caused much of the financial loss while flooding in Pakistan, Nigeria and South Africa killed the most people
Hurricane Ian in the United States and floods and Australia helped make 2022 one of the costliest years on record for the natural catastrophe insurance industry, Munich Re said Tuesday, warning that climate change was making storms more intense and more frequent.
Losses from natural disasters covered by insurance totaled about $120 billion last year, a similar amount to 2021, though below 2017’s record damage, said Munich Re, the largest reinsurer in the world.
Munich Re’s annual tally is above the average of $97 billion in insured losses over the past five years and exceeds an initial estimate of $115 billion last month by rival Swiss Re.
“Weather shocks are on the increase,” said Ernst Rauch, chief climatologist at Munich Re. “We cannot directly attribute any severe weather events to climate change. But climate change has made weather extremes more likely.
Annual insured losses of $100 billion seem to be “the new normal”, he said.
Total losses from natural disasters, including those not covered by insurance, amounted to $270 billion in 2022. This is down from around $320 billion in 2021 and near the five-year average. previous ones.
While insurance companies measure losses based on the value of damaged property, disasters in rich countries with expensive property are weighted more than those in poorer countries with cheaper buildings.
The United States again accounted for a large part of the losses with Hurricane Ian, which hit Florida in September, causing $60 billion in insured damage and $100 billion in total losses.
Flooding in Australia earlier this year and again in October resulted in $4.7 billion in insured losses and $8.1 billion in total.
Record monsoon rains and faster melting of glaciers caused flooding in Pakistan that killed at least 1,700 people and caused $15 billion in damage. Most of the damage was not covered by insurance.
The invasion of Russia & Pakistan floods defined 2022 in climate
Pakistan floods were the deadliest disaster of the year. Hundreds of people died in floods in South Africa in April and in Nigeria from June to October.
Scientists said the events of 2022 have been exacerbated by climate change and there is more – and worse – to come as Earth’s atmosphere continues to warm over the next decade and beyond.
Insurers have in some cases increased the rates they charge due to the growing likelihood of disasters and, in some places, stopped providing coverage.