Swiss Re: Hurricanes and Earthquakes Pose Massive Insurance Risks

The Swiss Re Institute reports that global insured losses from natural catastrophes, particularly hurricanes and earthquakes, could reach USD 300 billion in peak years. This figure significantly surpasses the projected USD 145 billion for 2025, driven by events like severe thunderstorms, floods, and wildfires.

Primary threats, such as hurricanes and earthquakes, primarily contribute to this spike in loss potential. For example, a severe natural event in a populated area could drastically increase annual losses. The recent increase in urbanization and climate change exacerbates these risks.

Data shows the US holds nearly 80% of global insured losses, especially from hurricanes and wildfires. With rising insurance costs, effective public-private protection measures and a robust reinsurance sector are crucial for mitigating future losses.