Climate change is causing more heavy rain, hail and flooding. This is also reflected in the balance sheets of insurance companies.
In the first six months of 2024, natural disasters caused significantly greater damage than “on average in the comparable period in previous years.
Insured losses worldwide amounted to 60 billion dollars (56.8 billion euros), reports the research institute of the Swiss reinsurer Swiss Re. That was 62 percent more than the ten-year average. Together with the uninsured losses, Swiss Re estimates the sum to be twice as high.
The biggest problem: thunderstorms
Damage caused by severe thunderstorms was particularly high, with an increase of 87 percent. They are often accompanied by strong winds or even tornadoes, as well as hail and heavy rain. Severe thunderstorms, especially in the USA, accounted for 70 percent of insured damage worldwide.
This does not mean that storms are more severe in the USA than elsewhere. Rather, more houses and infrastructure are insured there. In addition, real estate is often more expensive there than elsewhere and construction costs have risen sharply due to inflation. “Added to this is the increased vulnerability of insured properties to hail damage,” said Balz Grollimund, who is responsible for disaster risks.
What needs to be done
Swiss Re, the world’s largest reinsurer after Munich Re, recommends more investment in flood protection and stricter building regulations to better protect homes from severe hailstorms.
Source: Stern
