According to a natural disaster review for first half of 2022 released by global reinsure Munich Re, the period January-June 2022 saw lower natural disaster losses than in the comparative period of 2021. "Floods, earthquakes, and storms caused overall losses of some USD 65 billion compared with USD 105 billion in the loss-heavy previous year. At around USD 34 billion, insured losses were roughly in line with previous years".
At the same time, number of fatalities from natural disasters increased to 4,300 from 2,300 in H1 2021.
Per Regions, in total, the Asia-Pacific region accounted for USD 22 billion of overall natural disaster losses in the first half of the year - higher than usual. Insured losses came to USD 8 billion.
With a figure around USD 28 billion, the US accounted for almost half of overall losses in the first six months of 2022 and nearly two-thirds of insured losses, with a figure of USD 19 billion.
Europe generates USD 11 billion of overall natural disaster losses (with insured losses worth USD 7billion) while in case of Africa the figures were as follows: USD 2 billion - natural disasters, less than <1 billion being insured losses.
"The natural disaster picture for the first half of 2022 is dominated by weather-related catastrophes. Extreme tornadoes in the US caused billions in damage, parts of eastern coastal Australia were submerged by floods, and southern Europe struggled with extreme heat, wildfires and drought. The recently published IPCC report warned of the need for insurers to adapt their loss models to adequately assess the changing risk. Loss prevention is a fundamental component in mitigating the economic effects of climate change. It is therefore extremely worrying that insurance penetration in developing and emerging nations is stagnating at well below 10%, and that even in industrial countries there is much room for improvement", said Torsten Jeworrek, Member of the Board of Management, Munich Re.