Gallagher Re report unveils $100 billion nat cat loss price tag

31.01.2023 93 views

2022 marks the fifth year since 2017 that the insurance industry had to disburse over $100 billion to cover the costs of annual natural catastrophe losses, new data reveals - highlighting the worldwide need to speed up and scale climate resilience efforts.

Gallagher Re’s natural catastrophe report 2022 revealed another year of record-setting natural catastrophe events around the globe, adding up to a direct economic setback of $360 billion. In the aftermath of these catastrophes, private insurers ended up covering $125 billion worth of losses, while public insurance entities covered an additional $15 billion. 

In the US, while Hurricane Ian’s preliminary insured lossesfell between $50 billion and $65 billion, it caused an overall economic loss of $112 billion, making it one of the most expensive natural catastrophes ever recorded. 

According to Gallagher Re’s natural catastrophe report, the country also suffered a $9 billion drought paid in crop insurance indemnity payouts and three severe convective storm (SCS) outbreaks which, all in all, aided in making 2022 the 15th consecutive year with aggregate insured SCS losses over $10 billion and the 8th year since 2010 that SCS losses topped $20 billion. 

“The financial cost of natural hazards continues to increase, and we are further recognizing that a consistently high global protection gap – 61% in 2022 – means that much more opportunity exists to help people prepare before and after a disaster occurs,” said Gallagher Re chief science officer Steve Bowen. “As catastrophe losses grow more expensive, we again look to the connected nature of climate change, exposure growth, and social inflation as important issues enhancing eventual loss costs. 

“The increase in severity – and in some cases the frequency – of ‘secondary’ peril events, presents (re)insurers with a multi-faceted and complicated challenge when it comes to risk protection and mitigation.”

Outside the US, Gallagher Re’s natural catastrophe report revealed that the costliest natural catastrophe event in 2022 was the prolific seasonal monsoon flooding in Pakistan, which caused over 1,700 fatalities, with 2.3 million homes damaged and 33 million people affected across 90 districts, according to Pakistan’s National Disaster Management Authority.  

Historic flooding also impacted several regions of Africa, while the aftermath of a third consecutive La Niña brought record-setting rainfall to parts of Eastern Australia and resulted in nearly $5 billion in payouts according to the Insurance Council of Australia, Gallagher Re reported.  

 “The fingerprints of climate change were visible on virtually every major weather and climate event in 2022, once again highlighting the urgency to implement proper planning and investment strategies that will limit the risk to life and property,” Bowen said. “The implications of climate change on daily weather and climate events continues to be more evident and better understood. 

“While we are still trying to account for uncertainties that exist in how climate change may influence events on a regional and per peril basis, it is clear that impacts from the phenomenon are not future tense. They are already being felt today.” 

Source -


South Africa - Yet more rain could spell quickened end to grapes

In the Hex River Valley grape growers are warily watching threatening skies, again, as yet more rain is predicted for the Western Cape. “If it rains now it’ll cause big problems and the season will pretty much be at its end,” says an exporter.


India - Rain, hailstorm damage rabi crops on 1.74L acres in Hisar

The Agriculture Department report about crop loss indicated that rabi crops on 1.74 lakh acres has suffered losses in Hisar district due to the recent rains and gusty winds, while another 1,190 acres of rabi crop suffered damage due to hailstorms.


UK - Potato plantings have been halted because of weather conditions

Irish domestic consumption remains buoyant with the current weather. However, these conditions have put a halt to all field work and plantings. Exports continue to Portugal and Holland, with good appetite for more as stocks remain tight on the continent.  


USA - Weather disasters cause huge crop losses

The American Farm Bureau Federation’s Market Intel team has created a multi-part series highlighting agricultural losses incurred due to weather disasters and the associated disaster-assistance programs meant to help mitigate their impacts.


Spain - The SENSOPLAG project aims to develop digital tools to predict and detect pests that threaten citrus crops

The Generalitat, through the Valencian Innovation Agency (AVI), finances the development of new digital tools for the early detection and prediction of the main pests that threaten citrus crops in the Valencian Community.


USA - Salinas Valley crop damage tops $500 million

Preliminarily, Monterey County officials and agricultural experts have indicated that crop losses from the torrential rains that have hit the Salinas Valley this year could easily top $500 million. 


India - Another spell of hailstorm, crop damage likely over Punjab, Haryana

Punjab and Haryana is likely to be lashed by another spell of rain and thundershowers today and tomorrow. Hailstorm and strong winds may accompany the lightening and thunderstorm, adding fuel to the fire, to cause damage to the Rabi crops.


India - Farmers badly hit due to crops loss by in seasonal rains

Unseasonal rains and hailstorm in parts of Telangana have damaged standing crops in more than 1.50 lakh acres, according to initial estimates by the state government. The unexpected rains and hail storms due to the trough over the state caused huge losses to farmers, who were hoping to reap the Rabi harvest in a few days.