Natural disasters caused an estimated global loss of $ 74 billion

Natural disasters caused an estimated global loss of $ 74 billion in the first half of the year, according to Swiss Re. Although the economic damage from the first half of the year is below the ten-year average, the bank warns that estimates may not be final. According to the Swiss bank, the total amount to blame is mainly deep winter frosts, fires, heat waves and large storms, which plagued many parts of the planet in the first half of the year. On the contrary, the man-made damage that insurance companies had to pay fell year-on-year, but this is most likely due to covid measures that have limited many industries and the lives of individuals. Global economic losses due to disasters are estimated at $ 77 billion, of which man-made damage reached $ 3 billion and the remaining $ 74 billion from natural disasters. Although the ten-year average is as high as $ 108 billion, Swiss Re warns that the final balance sheet at the end of the year may be different. Because some damages have not yet been counted in the first half of the year, and statistically most disasters do not occur until the third quarter. Although the total losses are still below the ten-year average, the number of natural disasters caused by insurance companies has increased. While last year about $ 35 billion was paid for damage caused by a natural disaster in the same period, this year 40 billion was paid in premiums for the first half of the year. According to Swiss Re, the ten-year average is $ 33 billion. The 40 billion in premiums paid is also the second largest value since 2011, when insurance companies paid $ 104 billion in damage due to the earthquakes in New Zealand and Japan. According to Martin Bertogg, head of the department at the Swiss Re Institute, which deals with climate change, insurance companies will have to adapt to the new conditions. "The effects of climate change are starting to show. Whether it's higher temperatures, unpredictable precipitation, rising sea levels or extreme fluctuations. Combined with the rapid development of cities, more and more people are suddenly exposed to natural disasters, and insurance companies need to change the conditions under which they assess disasters, ”says Bertogg. According to him, more disasters are happening even in areas that have been relatively quiet so far and the inhabitants of these places are not used to extreme conditions, which may correspond to the type and amount of insurance they have.