The U.S., once again, led the way in global weather-related losses for this period with $65 billion worth of damage and 50% coming from re/insurance coverages according to Munich Re, a global leading provider of reinsurance.
In 2020 there were 2 million natural disasters around the globe which resulted into 1 to 3 meters increase above preindustrial levels by 200 km. These numbers show no sign of slowing down yet we are still seeing record high temperatures due largely carbon emissions that trap heat closer towards ground.
The reinsurer has published their H1 2022 review, which focuses on weather-related catastrophes in numerous parts of the world.
The report by Munich Re shows that overall economic losses in the period reached $65 billion, which is down on last year’s total of 105 billion with insured disasters staying roughly at 34 billion.
In terms of insured losses, it was the extreme rainfall and floods in eastern Australia that caused most ($3.7 billion) economic damage with record levels occurring along parts Queensland’s coast line as well New South Wales’ western rivers valley where some areas recorded their highest flood peaks since 1893.
The United States is a hotbed for natural disasters. The country’s total economic loss from these events was primarily due to the high number and severity of tornadoes that occurred throughout this period as well as devastating floods in some states such Texas or Nebraska where they happened just last summer – leaving thousands homeless who had no time whatsoever before disaster struck them.
In April, a single severe thunderstorm front produced tornadoes that destroyed $3 billion worth of assets. Of these 75% were insured and most (more than 60%) happened in the U.S., which has much higher take-up rates for insurance when compared with other parts on earth; this means there is already a significant difference between what was expected last year versus now due to increased losses from insured events this past season!
The high insurance density of these states is an excellent example for how it can help absorb the economic shocks from natural disasters.
However, Insurance penetration remains alarmingly low in many parts of the world, including Asia-Pacific. This region was hit by major disasters during first six months this year.
The frequency of extreme heat, drought and wildfires is on the rise in such areas. The scientific community believes climate change has played an important role in these events becoming more frequent than they used to be before human activity began releasing carbon dioxide into the atmosphere decades ago.
This leaves people and companies vulnerable to major losses if something ever happens and they don’t have a protection plan for their assets. Catastrophic events continue to rise as well which could have devastating effects on both businesses and consumers alike if precautions aren’t taken soon enough or properly planned out before they happen.
The situation is clear: those who aren’t covered by insurance or haven’t done anything against it yet face certain ruin if disaster strikes, as there’s no protection gap and rules like the one found across America where many people have homeowners coverage or general liability through insurance brokers, which provide sufficient coverages for every business no matter size or class.
With climate change, the risk of natural disasters and their financial implications have been changing. The recently published report warned that insurers must adapt to mitigate these effects by adequately assessing the changing risks faced with increasing temperatures around the world; however it also noted there is much room for improvement within industrial countries as well who currently suffer low rates (less than 10%) of insurance penetration even though they too face considerable threats due in part because many people do not consider themselves at risk from something like flooding or hurricanes which can cause large destructions without warning.
The decision to choose and purchase insurance coverage with an experienced broker such as FarmerBrown.com should be one of the top priorities of any business or home owner. They work with multiple carriers and have a wide range of coverage options which will save time on getting policies tailored just for every business need, without having any hassle or extra cost whatsoever.