A new report from Munich Re, the world’s largest reinsurance company, reveals that destructive thunderstorms and devastating earthquakes in 2023 incurred approximately $250 billion in damages globally. The report sheds light on the economic and insured losses incurred during the year, emphasizing the impact of natural disasters on various regions.
According to Munich Re’s report published on Tuesday, global economic losses from natural disasters in 2023 were comparable to the previous year. Notably, insured losses amounted to $95 billion, reflecting a decrease from $125 billion in 2022. The figures, though not extraordinary in isolation, signify another year of “extremely high” damages, even without any mega-disasters occurring in industrialized countries.
Munich Re points out that the noteworthy losses resulted from a surge in severe regional storms, primarily affecting North America and Europe. Thunderstorm-related damages reached unprecedented levels, with North America witnessing the destruction of approximately $66 billion in assets, of which $50 billion was insured. In Europe, thunderstorm losses amounted to $10 billion, with $8 billion covered by insurance. The report underscores the significance of these losses, categorizing them as “secondary perils” or smaller to mid-sized events, and warns of a potential upward trend in the coming years.
The report acknowledges the influence of the climate crisis in intensifying the frequency and severity of extreme weather events. Munich Re emphasizes the societal need to prioritize resilience as a countermeasure against rising losses, transforming the issue from an economic challenge to a broader social concern.
Munich Re reports a significant rise in the number of deaths caused by natural disasters, reaching 74,000 in 2023—far exceeding the annual average of 10,000 over the past five years. Notably, earthquakes accounted for approximately 63,000 deaths, representing 85% of the total deaths for the year. The report singles out a series of earthquakes in Turkey and Syria in early February as the most destructive natural disaster of 2023, resulting in overall economic losses of around $50 billion.
The report draws attention to the marked difference between the earthquake impacts in Turkey and Syria and those in Japan in early 2024. Despite similar magnitudes and occurring in densely populated regions, the death toll in Japan stands at around 160. Munich Re suggests that Japan’s superior earthquake preparedness, including robust building codes, contributed to the stark contrast in outcomes.
Munich Re’s comprehensive report underscores the multifaceted consequences of natural disasters, combining economic, societal, and regional considerations. As extreme weather events and seismic activities continue to pose challenges, the findings emphasize the imperative for global societies to prioritize resilience and proactive measures against the escalating impacts of climate-related and geological hazards.
