A reduction from the previous year but still above the long-term average, Munich Re reported on Tuesday that insured losses from earthquakes in Turkey and Syria, storms in the US, and other natural disasters totaled an estimated $95 billion in 2023.
In addition to being less than the $125 billion recorded in 2022, the total losses from natural disasters covered by insurance also fall short of the $100 billion estimate released by Swiss Re last month.
The largest reinsurer in the world, Munich Re, has provided a 2023 figure that is higher than the 10-year average of $90 billion and significantly higher than the 30-year average of $57 billion.
The most catastrophic earthquakes occurred in Turkey and Syria, where they claimed 58,000 lives, caused $50 billion in total losses, and caused $5.5 billion in insurance-covered losses.
However, Munich Re stated that the many strong regional storms that increased in the US and Europe in 2023 as a result of climate change, rather than a few major events, were what really stood out.
Reporters were informed by Munich Re's head climate scientist, Ernst Rauch, that the background noise has increased. Events that caused losses that were once considered incidental and recognized as "side risks" of lesser importance have now become a substantial source of losses.
In 2023, natural disaster losses — including those not covered by insurance — totaled $250 billion. That is higher than the 10- and 30-year averages, but comparable to 2022 and the average of the preceding five years.
