Rising Reconstruction Costs and Climate Change Fuel Record High Natural Catastrophe Losses

It is over a decade since Verisk started producing its ‘Global Modeled Catastrophe Losses Report’, which, in 2023, projected a record high global modelled insured average annual loss from natural catastrophes of US$133 billion.

Discussing the report with Insurance Business, Giovanni Garcia (pictured), SVP of business development of the extreme event solutions business unit at Verisk London noted that this figure is expected to continue to grow, and why the insurance industry should be prepared to experience total insured losses from natural catastrophes in excess of US$100 billion every year. In the last five years, this figure has been US$101 billion, he said, while for the prior five-year-period, it was circa US$70 billion.