Munich Re’s half-yearly review of global natural disaster costs puts insured losses at $US43 billion ($64.39 billion), above the decade average of $US34 billion ($51.13 billion). 

The reinsurer remarks on higher-than-usual losses in Europe due to destructive earthquakes in Turkey in February, and devastating storms in the US as key drivers for the insured losses figure.   

Insured losses in the Asia-Pacific region were recorded at $US3 billion ($4.49 billion), with Cyclone Gabrielle in New Zealand marking the most expensive event.    

Munich Re says the Turkey and Syria earthquakes killed nearly 58,000 people, with the global deaths from disaster events for the period at 62,000. This marks the highest number of casualties from natural disaster events for the first half of a year since 2010.   

Munich Re Reinsurance Committee Chair and Board of Management member Thomas Blunck says the loss figures have “starkly illustrated” the importance of ensuring safety from worsening natural disasters.   

“The primary aim must be to save lives,” Mr Blunck said. “The next step is to reduce losses in such catastrophes. 

“We also need to adapt to handle the consequences of global warming in the form of more frequent or more severe weather disasters much more effectively.”   

He says efforts to reduce risk should prioritise selecting locations able to withstand impacts from future natural disaster events and reinforcing effective construction methods to build resilience and minimise loss.   

Munich Re Chief Climate and Geo Scientist Ernst Rauch also notes the worsening impact of climate change on El Nino, with countries across the northern hemisphere suffering from extensive heatwaves.  

“As in 2016, the natural climate phenomenon El Nino is playing a role in 2023,” Mr Rauch said.   

“It is characterised by a temperature swing in the Pacific that influences extreme weather in many regions of the world and causes temperatures to temporarily rise further.” 

“Research on global temperature trends is unequivocal: rising water and air temperatures worldwide are mainly driven by climate change, in turn causing more weather-related natural disasters and financial losses.”   

Overall economic losses were estimated to be at $US110 billion ($164.71 billion), below the total from the first half of last year of $US120 billion ($179.68 billion) but above the average for the previous decade.   

Munich Re says a persistent “large insurance gap” continues worldwide, with less than 40% of all losses insured, above the decade average figure at around 35%.