Insured average annual losses rose $US6.1 billion ($8.86 billion) over 2019 to nearly $US92 billion ($133.67 billion), according to AIR’s global cat losses report.

Average annual losses have now risen for three consecutive years. Losses were $US78.7 billion ($114.35 billion) in 2017.

The global protection gap widened over 2019 by $3.5 billion ($5.09 billion), according to the AIR statistics. The number of insurable properties grew from $US181.8 billion ($264.15 billion) to $US191.4 billion ($278.09 billion), yet average annual insured losses now sit at less than half that (47%). The growth in losses partly reflects risk changes based on AIR’s annual review of industry insured values around the world.

Insured losses in Asia are only 23% of all insurable losses – $US50.9 billion ($73.96 billion) in insurable property as against only $US12 billion ($17.44 billion) in insured property – the worst regional result. Yet the protection gap in North America – including the United States – is $US47.9 billion ($69.6 billion), and $US8 billion ($11.62 billion) in Europe.

Severe storms or tropical cyclones were responsible for 62% of global average annual insured losses this year. Wildfires only accounted for 4% of losses. Earthquakes were responsible for 14% of losses. A major update to Australia’s earthquake model was not included in the paper.

The total global economic loss from natural catastrophes is estimated at $US393.8 billion ($572.17 billion).

“Our analyses indicate there’s still work to be done to address the disparity between economic and insured losses,” said AIR Worldwide president Bill Churney. “With modelled average annual loss at less than a quarter of the global economic estimate, we’re not seeing a significant narrowing trend.”