12th January 2022
In 2021, natural disasters caused overall losses of $280bn, of which roughly $120bn were insured
Alongside 2005 and 2011, the year 2021 proved to be the second-costliest ever for the insurance sector(record year 2017: 146bn). Inflation-adjusted)–overall losses from natural disasters were the fourth-highest to date (record year 2011: $355bn).
Hurricane Ida was the year’s costliest natural disaster, with overall losses of $65bn(insured losses of $36bn)
In Europe, flash floods after extreme rainfall caused losses of $54bn(€46bn)–the costliest natural disaster on record in Germany
Many of the weather catastrophes fit in with the expected consequences of climate change, making greater loss preparedness and climate protection a matter of urgency
Torsten Jeworrek, member of the Board f Management at Munich Re, comments "The images of natural disasters in 2021 are disturbing. Climate research increasingly confirms that extreme weather has become more likely. Societies need to urgently adapt to increasing weather risks and make climate protection a priority. Insurers meet their responsibilities by covering a portion of the risks and losses. By applying risk-adequate premiums, they put a price on natural hazards, thereby encouraging carefully considered behaviour to limit the losses. At the same time, severe volcanic eruptions and earthquakes in 2021 showed that we should not overlook these categories of natural disasters either."
Munich Re Trends(495 articles)