Natural catastrophes were responsible for $270 billion in economic losses and $111 billion in insured losses in 2021, according to the Swiss Re Institute, with floods responsible for 31 percent of economic losses. While floods caused $82 billion in economic losses, insured flood losses were approximately $20 billion.
There's a strong chance of a storm developing ahead of the official start of this year’s Atlantic hurricane season on June 1, and this year's season should be another active one, according to forecasters at AccuWeather. AccuWeather predicts 16 to 20 named storms, including 6 to 8 hurricanes.
The United States experienced an extraordinary year for extreme weather in 2021, with insurance industry losses driven by a number of unusual events, according to a recent report from Gallagher Re. Other regions of the world suffered major storm losses as well, the intermediary reports.
Secondary peril events are becoming more severe and are responsible for an increasingly large amount of insured losses, affecting the bottom lines of personal and commercial lines property insurance companies, according to a recent commentary from A.M. Best. Demographic shifts and population growth in catastrophe-prone areas add to the risk.
An accounting of 2021's natural disasters shows those catastrophes continuing to grow in frequency and severity, as the protection gap between economic and insured losses continues to grow as well. Global insured catastrophe losses were $130 billion, while economic losses were $343 billion, according to a new report from Aon.