Natural, man-made disasters cost world $280bn in 2021

THE WORLD SUFFERED economic losses from natural and man-made disasters to the tune of $280 billion last year, and $119 billion of that amount was insured, a report by Swiss Re has shown.

The Swiss Re sigma research also shows that the estimated amount represents the sixth highest since record keeping began and the 16th highest since 1970 after normalising for GDP growth.

Swiss Re in a statement, said that the $119 billion of insured losses was the fourth highest on record and included $111 billion in compensation for damage resulting from natural catastrophes.

The report also revealed that natural catastrophes accounted for $270 billion of the total economic losses, out of which were 50 severe flood events globally.

Swiss Re revealed that while global economic losses from floods reached $82 billion, only $20 billion of that was insured. Floods accounted for 31 percent of global economic losses from natural catastrophes in 2021, just two percentage points less than tropical cyclones, showing the substantial threat posed by flood losses.

“Floods affect nearly a third of the world population, more than any other peril. In 2021 alone, we witnessed more than 50 severe flood events across the world,” Martin Bertogg, head of catastrophe perils at Swiss Re, said in a statement issued with the report. “Given the scale of devastation, flood risk deserves the same attention and risk assessment rigour as primary perils such as hurricanes.”

Flooding and other so-called “secondary peril events” accounted for the majority of insured losses from natural catastrophes in 2021, Swiss Re said, noting the flooding in Europe in July was the costliest natural disaster on record in the region. Severe convective storms, floods and wildfire have been regular occurrences in the last five years, and represent multibillion-dollar insured losses from secondary peril.