Financial expert analyzes the 2023 natural catastrophe report: Insured losses are falling, but overall losses remain high

Financial expert analyzes the 2023 natural catastrophe report: Insured losses are falling, but overall losses remain high

According to a report by www.finanzen.net,

Insured losses from natural disasters fell last year, according to a report from reinsurer Munich Re. In 2023, insured losses were $95 billion after $125 billion in the previous year. Total losses remained unchanged at $250 billion, primarily due to the earthquakes in Turkey and Syria, only a fraction of which were insured. According to Munich Re board member Thomas Blunck, 2023 was characterized by very high insured losses from natural catastrophes, although there were no extreme individual losses. There have been no defining individual events like Hurricane Ian in 2022, which cost the industry $60 billion, but North America and Europe have never seen such high levels of thunderstorm damage. $50 billion in insured thunderstorm losses occurred in North America and $8 billion in Europe. The hurricane season was relatively mild in 2023, but Storm Otis caused around $12 billion in damage.

The economically most expensive and humanitarian disaster was the earthquake in Turkey and Syria, in which around 58,000 people died. A total of 74,000 people lost their lives due to natural disasters last year, compared to 11,400 the previous year.

From a financial perspective, the reduced insured losses could have a positive impact on the insurance industry as the overall burden of natural catastrophes has fallen. The Munich Re share also temporarily lost 1.80 percent in XETRA trading, which could be due to the market influences of this news.

Overall, the figures suggest that the insurance industry continues to face challenging conditions due to natural catastrophes, but the trend in reduced insured losses suggests some relief.