New report finds natural disasters cost billions each year

New data finds that natural disasters cost the world billions in losses last year after figures were evaluated.

According to data analysed by Munich Re, extreme storms and other natural disasters cost the world approximately USD$250 billion and only half was covered by insurers.

The data includes the impact of significant losses caused by earthquakes in Turkey and Syria, however, it noted the US had experienced a less severe hurricane season than in 2022.

Ernst Rauch, Chief Climate Scientist at Munich Re said: “We used to refer to regional thunderstorms as secondary perils because they only cause small or medium-sized damage on their own.

“But as the number of thunderstorms increases, we have to think about a new classification.”

The implications of climate change have had major significance for how the insurance industry handles claims, with the Bank for International Settlements warning governments about being left to pay the bill.

The analysis found that global insured losses declined to USD$95 billion last year, however, scientists predict that 2024 will be hotter than last year, increasing the likelihood of more extreme weather events.

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