Global insured nat cat losses again top $100B: Gallagher Re

Global insured losses from natural catastrophes totaled an estimated $123 billion in 2023, the fourth consecutive year to exceed $100 billion, according to a report Wednesday from Gallagher Re, the reinsurance brokerage of Arthur J. Gallagher & Co.

Severe convective storm losses drove the total in 2023, accounting for an estimated 58%, or $71 billion, of global insured losses, $60 billion of which came in the U.S., where six of the top 10 costliest insured events of 2023 were severe convective storm events.

In all, there were 34 billion-dollar insured loss events, a yearly high, including 20 billion-dollar insured loss events from severe convective storms.

The global economic cost of all natural perils was estimated at $357 billion, the eighth consecutive year global losses have surpassed $300 billion, according to the report. 

Steve Bowen, Gallagher Re’s chief science officer, told Business Insurance that this was the first time insured losses had exceeded $100 billion without a singular, large event such as a major hurricane to drive the loss total.

Mr. Bowen suggested the $100 billion mark may be “the new normal” and that factors including increasing exposures, as more populations move into the paths of loss events, are driving the higher insured loss totals.