Floods and storms around the world weighed on insurers’ bills in the first half of the year, with economic losses caused by natural disasters amounting to 72 billion dollars (70 billion euros), according to an initial estimate by Swiss Re published this Tuesday.
If this figure is lower than that of the first half of 2021, during which economic losses worldwide had reached 91,000 million dollars, the Swiss group that acts as an insurer of insurers has nevertheless highlighted the growing weight of the so-called secondary disasters, increasingly costly, between the floods in Australia, the winter storms in February in Europe or the hailstorms in France, he underlines in a press release.
A bill of 38 billion dollars for insurers
Adding man-made disasters such as industrial accidents, economic losses from natural disasters and claims reached $75 billion in the first half, compared to $95 billion in the first half of 2021, it said. the reinsurer.
Insurers’ bills rose to $38 billion, up from $49 billion the previous year. However, the bill for natural disasters alone (excluding human disasters) amounts to 35,000 million dollars, or 22% above the ten-year average, calculates the reinsurer, which warns of the effects of climate change. The frequency of so-called secondary disasters, such as floods and storms, as opposed to major disasters like earthquakes or hurricanes, is increasing around the world, she notes.
“The effects of climate change are evident in the increasing number of extreme weather events, such as the unprecedented floods in Australia and South Africa,” said Martin Bertogg, Swiss Re.’s business director specializing in disaster coverage, quoted in the statement. press.
Increase in “secondary” disasters
February storms in Europe cost insurers $3.5bn, Swiss Re estimates. Australia’s flood bill after torrential rains in February and March is rising ‘so far’ to $3.5bn, setting a “new record”. “for the costs caused by the floods in the country, specifies the reinsurer. Estimates of hailstorms and heavy rains in France amount to 4,000 million euros in terms of insured losses.
The Swiss reinsurer has once again highlighted the increase in the frequency but also in the severity of these so-called secondary disasters that “unlike hurricanes and earthquakes” are “ubiquitous” and “aggravated by rapid urbanization”, “especially in places vulnerable,” he warned. Mr. Martin Bertogg.
The Swiss group also mentioned the heat waves in Europe, which translate into fires and drought-related damage, without giving estimates at this time after this first semester marked by numerous floods, also in China, Bangladesh and India.
“Climate change is one of the greatest risks facing society and the global economy,” added Jerome Jean Haegeli, chief economist at Swiss Re, in the statement. But 75% of economic losses caused by natural disasters are not covered by insurance, he warns. Establishing alliances between the sector and insurers is, therefore, “critical”, according to him, in order to have structures that allow them to be better covered against the effects of climate change.
Source: BFM TV
