“2022 has been another year of increased natural catastrophe loss activity, and demand for insurance is growing as the protection gap remains vast,” stated Thierry Léger, group chief underwriting officer at Swiss Re. “To enable the insurance industry to keep up with increasing volatility and demand, it will be key to model evolving frequency and severity trends. Pricing needs to reflect the effective risk. In this complex environment, Swiss Re is ready to support clients with our strong balance sheet, risk capacity and expertise.”
Hurricane Ian was 2022’s costliest pure catastrophe, with estimated preliminary insured losses between $50 billion and $65 billion. Ian made landfall in Florida in September as a class 4 storm, bringing with it excessive winds, storm surge and torrential rains. Swiss Re Institute estimates Ian to be the second-costliest insured loss on file, exceeded solely by Hurricane Katrina in 2005.
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Hurricane Ian wasn’t the one pricey pure catastrophe in 2022. In February, Europe was pounded by a collection of winter storms that triggered estimated insured losses of greater than $3.7 billion. In February and March, torrential rains triggered flooding in Australia that, at an estimated $4 billion, is the nation’s costliest pure disaster ever. In France, hailstorms triggered estimated insured losses of €5 billion (about $5.25 billion), according to Swiss Re Institute.
“Extreme weather events have led to high insured losses in 2022, underpinning a risk on the rise and unfolding on every continent,” stated Martin Bertogg, head of disaster perils at Swiss Re. “Urban development, wealth accumulation in disaster-prone areas, inflation and climate change are key factors at play, turning extreme weather into ever-rising natural catastrophe losses. When Hurricane Andrew struck 30 years ago, a US$20 billion loss event had never occurred before – now there have been seven such hurricanes in just the past six years. At Swiss Re, we are continually adapting our natural catastrophe models to anticipate trend risks explicitly, enabling us to stay ahead of the curve and provide sustainable cover to our clients, such as with our new hurricane model.”
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