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

This was 7% of the estimated total economic loss of US$77b, globally.

For the first three months of the year, the world’s losses due to natural catastrophes went above average.

According to reinsurance broker, Gallagher Re, initial economic loss driven by natural causes amounted to US$77b. Only 29% of the total losses were insured by public and private entities.

Gallagher said that about 7% of the total economic losses were natural catastrophes that hit Asia. This is also equivalent to US$5.39b of the world’s total.

The region fell behind Latin America with 9% (or US$6.93b) and North America with 26% (US$20.0b).

However, the Middle East had the most share in natural economic losses, covering more than the world’s total or US$40b.

According to Gallagher's Q1 2023 Natural Catastrophe Report, the earthquake which troubled Turkiye and Syria alone was an estimated US$45b in physical damages. Whilst total insured losses stood at US$5 only.

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“The Turkey earthquake sequence was a difficult reminder of the significant vulnerabilities that exist to life and property from seismic events,” Gallagher Re Chief Science Officer, Steve Bowen, said.

Excluding earthquakes, weather and climate-related disasters caused about US$31b in economic losses. Insurers covered over half of these losses, amounting to US$17b. 

The majority of losses came from the US due to record Q1 SCS activity, with losses exceeding US$13b and insured losses at over US$10b. 

Other events included severe flooding in New Zealand, a series of Atmospheric River events in California, and major droughts in South America.

“The high-dollar loss costs observed in Q1 2023, including those from notable thunderstorm and flood-related events, were marked by notable gaps in insurance coverage across both developed and emerging economic territories.” Bowen added.