Insurers covered more than $US108 billion ($165.82 billion) of natural catastrophe losses last year, with a record number of events reported, a new Swiss Re report has revealed.

The reinsurer says more than 142 natural catastrophes were recorded, with frequency, rather than severity, the driving force behind the losses.

The devastating earthquake series in Turkey and Syria was the costliest event, with $US6.2 billion ($9.52 billion) in insured costs, while severe convective storms accounted for most losses, with more than 30 events costing between $US1 billion ($1.54 billion) and $US5 billion ($7.68 billion). 

The overall loss figure was notably lower than that of 2022, which recorded $US133 billion ($204.20 billion) in insured natural catastrophe costs.

However, losses continued to exceed the decade average of $US90 billion ($138.18 billion).

Economic losses for the year totalled $US280 billion ($429.90 billion), lower than 2022’s $US286 billion ($439.11 billion).

Swiss Re says the figures continue the trend of natural disaster losses outpacing economic growth. Since 1994, inflation-adjusted insured natural catastrophe losses have risen by more than 5.9% a year, compared with a global GDP rise of 2.7%. 

Swiss Re Group Chief Economist Jerome Jean Haegeli warns intensification of climate-related hazards could mean natural catastrophe losses will nearly double in the next decade.

“Fiercer storms and bigger floods fuelled by a warming planet are due to contribute more to losses,” he said. “This demonstrates how urgent the need for action is, especially when taking into account structurally higher inflation that has caused post-disaster costs to soar.” 

The reinsurer emphasises the role of insurance and the public sector in minimising exposures caused by economic developments, through enforcing adaptation measures such as flood barriers, discouraging construction in perilous areas and enforcing building codes. 

“As weather hazards intensify due to climate change, risk assessment and insurance premiums need to keep up with the fast-evolving risk landscape,” Swiss Re Global Clients and Solutions CEO Moses Ojeisekhoba said. “Looking ahead, we must focus on reducing the loss potential.

“Keeping property insurance sustainable and affordable requires a concerted effort by the private industry, the public sector and broader society – not just to mitigate climate risks, but to adapt to a world of more intense weather.”