Hurricanes and floods will cause $120 billion in losses by 2022

FRANKFURT/MUNICH, Jan 9 (Reuters) – Hurricane Ian in the United States and floods in Australia helped make 2022 one of the costliest years on record for natural disasters, Munich Re said. on Tuesday, warning that climate change is making storms stronger. and repeat.

Losses from natural disasters covered by insurers were about $120 billion last year, the same as in 2021, although less than the 2017 damage record, Munich Re (MUVGn.DE)the largest company in the world, said.

Reuters Graphics

Munich Re’s annual figure is higher than the average of $97 billion in insurance losses in the last five years and more in the beginning. estimated at $115 billion last month by rival Swiss Re (SRENH.S).

Reuters Graphics

“Climatic shocks are increasing,” Ernst Rauch, chief climate scientist at Munich Re, told Reuters. “We cannot accurately predict any extreme weather events caused by climate change.

The remains of damaged buildings are seen nearly a month after Hurricane Ian struck Fort Myers Beach, Florida, U.S., October 26, 2022. REUTERS/Marco Bello/File Photo

Annual losses of $100 billion seem to be the “new normal”, he said.

Total losses from natural disasters, including those not covered by insurance, will be $270 billion in 2022. This is down from $320 billion in 2021 and close to the average of five last year.

The United States recovered a large part of the losses and Half of Janwhich hit Florida in September, causing $60 billion in damages and $100 billion in total losses.

The floods in Australia at the beginning of the year and again in October caused $ 4.7 billion in damages and $ 8.1 billion in total.

Record rainfall and rapid melting of ice resulted floods in Pakistan it killed at least 1,700 people and caused $15 billion in damages. Most of the damage was not covered by insurance.

Scientists say the events of 2022 were exacerbated by climate change and more — and worse — are to come as global warming continues over the next decade and beyond. .

Insurers are increasing their premiums in some cases due to the increase in accidents, and in some areas they are no longer provide insurance.

Reporting by Tom Sims and Alexander Huebner. Edited by Jane Merriman

Our standards: The Thomson Reuters Trust Principles.

Thomson Reuters

Includes German finance with a focus on large banks, insurance companies, regulation and financial crime, previous experience with the Wall Street Journal and New York Times in Europe and Asia.

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