Natural Disasters Cost Insurers $76 Billion in 2020
Swiss Re reports that natural disasters like wildfires and hurricanes caused $76 billion in insured losses this year, which is a 40 percent increase from the $54 billion in losses in 2019. It was also far higher than the $7 billion in manmade losses experienced this year.
The total insurance industry losses of $83 billion made 2020 the fifth costliest year since 1970, says Swiss Re. The North Atlantic hurricane season brought 30 named storms, causing $20 billion in insurance claims.
“Losses were driven by a record number of severe convective storms and thunderstorms with tornadoes, floods, and hail and wildfires in the United States,” Swiss Re explains. Climate change is expected to worsen the number of such events as humid air and rising temperatures create more extreme weather conditions, according to the reinsurer.