According to Munich Re’s latest assessment, natural disasters have resulted in approximately $250 billion in damages in 2023. This has led to $95 billion in insurance losses within the sector.
Overall Losses in Line with Previous Year, Insured Losses Decline
Munich Re’s report states that the overall losses for this year were similar to the previous year. However, there has been a decline in insured losses compared to the $125 billion figure reported earlier.
Losses Driven by Regional Storms
Numerous regional storms have been responsible for these losses, affecting both sides of the Atlantic. The storms proved to be more destructive than ever before, especially in North America and Europe.
Thunderstorms Cause Billions in Damages
In North America, thunderstorms alone resulted in the destruction of assets worth approximately $66 billion. Europe experienced around $10 billion in damages. The combined insured losses from these thunderstorms amounted to $58 billion.
Upward Trend in Losses
Munich Re highlights that losses from storms in North America and other regions are on the rise. Additionally, it is worth noting that 2023 has been recorded as the hottest year on record.
Costliest Events of 2023
Some of the most costly events in 2023 include a series of earthquakes that struck Southeast Turkey and Syria in February, Typhoon Doksuri hitting China in July, and Hurricane Otis impacting Mexico in October.
In conclusion, the devastating impact of natural disasters has caused significant financial losses and insurance claims in 2023. Munich Re’s assessment provides valuable insights into the scale of these losses, as well as the regions most affected.