Severe thunderstorms in the United States during the first half of this year have resulted in an unprecedented level of insured losses, totaling $34 billion USD, according to Swiss Re Group.
This surge in financial damage has been rapidly induced by the intensification of violent meteorological events, a consequence of climate change. Nearly 70 percent of the global catastrophic damages for the year, which amounted to $50 billion USD, originated from damages caused by convective storms in the U.S.
Texas severely impacted by Surge – Swiss Re Group
These storms encompassed hail, lightning, heavy rain, and strong winds, with Texas being the state most severely impacted. The severity was underscored by the occurrence of 10 events, each causing damages of $1 billion USD or more, nearly doubling the historical average over the past decade.
Swiss Re Group Chief Economist, Jerome Jean Haegeli, highlighted that climate change is already contributing to heightened perils like heatwaves, droughts, floods, and extreme precipitation.
Urban sprawl into high-risk environments and poor land use planning in coastal and riverine areas have further compounded the exposure to risks.
Although the aftermath of meteorological events continues to unfold, the second half of the year has already witnessed a series of high-profile events including heatwaves, storms, floods, and wildfires across various regions worldwide.
This unsettling trend aligns with another reinsurer, Munich Re, which recently reported that the series of thunderstorms in Texas during June ranked as the most expensive single event in the U.S. for the year thus far, resulting in an estimated loss of around $8.4 billion USD.
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As extreme weather events grow in frequency and intensity, businesses and communities are urged to prepare for the rising physical and financial risks associated with climate-related weather events.
Reinsurers like Swiss Re and Munich Re play a critical role in covering the losses that could otherwise severely impact individual insurance companies, indicating the pervasive effects of these weather patterns on the broader insurance industry.
