Less than half of global losses due to calamities insured

There were indications of a shift toward an El Niño-like pattern in Asia.

Preliminary estimates show that the total direct economic losses from natural hazards in the first six months of 2023 amounted to $138b, according to a Gallagher Re report.

Out of this, only $52b was covered by private or public insurance entities, leaving a substantial protection gap of $86b (63%).

In the first half (H1) of 2023, weather and climate-related events (excluding earthquakes or other non-atmospheric-driven perils) accounted for $92b in economic losses, with $46b being insured.

The insurance industry was significantly impacted by severe convective storms (SCS) in H1 2023, particularly in the US.

Other regions also experienced notable natural hazard events.

ALSO READ: Asia’s economic loss due to natural catastrophes reached $5.39b: Gallagher Re

New Zealand faced its two costliest weather events on record in January and February, incurring combined insured losses of at least $2.3B.

Anomalous warm conditions linked to the transition to El Niño and the influence of climate change triggered catastrophic wildfires in Canada, severe droughts in South America, Europe, and Asia, and deadly heatwaves in parts of North America and Asia. 

Please note that these figures are subject to change as loss development occurs and new data becomes available in the following weeks and months.