Swiss Re Warns Of Catastrophe Loss Potential From Climate Change

The influence of climate change is becoming more visible in the increasingly frequent occurrences of so-called secondary peril events, according to Swiss Re’s Group Chief Economist, who also warns of the potential for peak perils to follow a similar trend of rising loss costs.

As trends suggest a rising level of economic and insured impacts from events such as flooding, droughts and wildfires, the global reinsurance firm also warns that trends in rising loss-costs will also apply to peak catastrophe perils as well.

The reinsurance firm warns that the global industry may not be far off a USD 250 billion to USD 300 billion industry loss year, when it experiences a peak-loss inducing hurricane season and multiple secondary peril events in the same calendar period.

2020 provided plenty of warnings of this, not least in the record levels of US hurricane activity that occurred.