Natural disasters cause billions in damage worldwide
Published: Wednesday, Aug 7th 2024, 10:10
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In the first six months of the year, natural disasters caused billions in losses worldwide. The main drivers were severe thunderstorms in the USA, as the Swiss Re Institute writes in a press release on Wednesday.
The reinsurer estimates the economic costs of natural and man-made disasters in the first half of 2024 at a total of USD 127 billion. In the first half of 2023, the figure was significantly higher at 159 billion.
However, only catastrophe losses amounting to 66 billion dollars were insured, compared to 65 billion dollars in the previous year. According to Swiss Re, natural catastrophes alone had an estimated impact of 60 billion dollars on insurance companies' balance sheets.
High thunderstorm damage
Severe thunderstorms with strong winds, hail and heavy rain are particularly significant. These caused insured losses of 42 billion dollars worldwide. In the USA alone, twelve storms were recorded with damage of at least one billion dollars each.
According to calculations by the Swiss Re Institute, insured losses due to severe thunderstorms in the USA have risen by 8 percent annually since 2008. One of the reasons for this is the rise in construction costs due to inflation, according to chief economist Jérôme Jean Haegeli in the press release.
"Exposure continues to rise in line with economic development. That's why there should be urgent investment in protective measures," Haegeli continues. He cites flood protection and improved building regulations to protect houses from severe hailstorms as examples of such measures.
Flash floods in the Emirates
A total of 14% of all insured losses were caused by flooding, primarily in the United Arab Emirates, Germany and Brazil. In April, thunderstorms on the Arabian Peninsula caused flash floods with damage amounting to at least 2 billion dollars.
©Keystone/SDA
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