Insured losses from natural catastrophes were the highest on record for January-June with the sole exception of first-half 2011, when devastating earthquakes struck New Zealand’s Canterbury region and Japan, Swiss Re estimates.

Severe weather events drove global insured natural catastrophe losses of $US40 billion ($54.24 billion) in the first half of 2021, up 13% on the same period a year earlier, as winter storms, intense heatwaves and severe flooding costs were fuelled by climate change and urban development.

Winter storm Uri caused an estimated $US15 billion ($20.34 billion) in insured losses – the highest ever for that peril in the US and around 38% of all estimated insured losses from natural catastrophes in the first half.

Swiss Re Head of Cat Perils Martin Bertogg says the effects of climate change are manifesting in warmer temperatures, rising sea levels, more erratic rainfall patterns and greater weather extremes. Together with rapid urban development and accumulation of wealth in disaster-prone areas, this means secondary perils such as winter storms, hail, floods or wildfires, lead to ever higher catastrophe losses in the magnitude of hurricanes.

“The experience so far in 2021 underscores the growing risks of these perils, exposing ever larger communities to extreme climate events,” Mr Bertogg said. “The insurance industry needs to upscale its risk assessment capabilities for lesser monitored perils.”

Extreme heat shattered temperature records across western Canada and the northwestern US at the end of June, with temperatures reaching more than 45°C (113°F) for consecutive days and leading to wildfires that spread south to California.

In June, severe weather including thunderstorms, hail and tornadoes hit Europe, affecting homes and vehicles in Germany, Belgium, the Netherlands, Czech Republic and Switzerland. Insured losses from this convective storm activity are estimated at $US4.5 billion ($6.11 billion).

The third quarter historically is the most loss-prone in terms of natural catastrophes and July saw severe flooding cause further property destruction and loss of life in Europe, as well as in China.

Floods during July in Germany alone are estimated to trigger insured losses of €4.5–5.5 billion ($7.19-$8.82 billion).

In August, extreme heat fuelled wildfires in Turkey, Greece and Italy.

Global economic losses from disaster events were estimated at $77 billion ($104.43 billion) in the first half. Man-made disasters triggered $US2 billion ($2.71 billion) of insured losses, less than usual amid COVID restrictions.

Close to 4500 people lost their lives or went missing in disaster events in the first half.