Global insured natural catastrophe losses in 2023 are expected to eclipse $100 billion for the sixth time since 2017.

Severe thunderstorm-related loss events and the effects of climate change are the biggest factors behind the high losses so far with an annual toll of at least $100 billion per year becoming a “new normal” for public and private insurance companies.

Total economic losses from January through September have been estimated at $290 billion. “Severe convective storms” accounted for two-thirds of all global insured losses.

This category includes thunderstorms and their related hazards such as large hail, straight-line winds and tornadoes. Such insured losses topped $50 billion in the U.S. for the first time in a single year.

Climate change, increases in disaster exposure, as well as inflation, which increases recovery costs, are cited as reasons for elevated losses. With the year tracking toward the warmest on record, climate change’s influences on disasters, including worsening heat waves and related droughts and wildfires, as well as flooding, are driving up disaster costs.

In the U.S. during the past year, there have been major increases in insurance premiums in states that are especially at risk for disaster losses, with some carriers ceasing to operate in these areas. This includes Florida, Louisiana and California, with insurance customers facing sticker shock in places that don’t face hurricanes and wildfires but saw repeated, expensive severe thunderstorm events this year.

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