AIR pegs annual global insured cat losses at about $106B
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Boston-based catastrophe modeling company AIR Worldwide said Monday that catastrophes globally are expected to cause about $106 billion in insured losses on an annual basis.
This figure exceeds the actual average loss over the past decade of approximately $75 billion annually.
Bill Churney, president of AIR Worldwide, said that outside of 2017, actual global insured losses have been below the modeled long-term average.
The portion of economic loss from natural disasters that is insured varies by region. In North America, about 50% of the economic loss from natural disasters is insured, while in Asia and Latin America, insured losses account for only about 12% and 24% of economic losses, respectively, reflecting the low insurance penetration in these regions.
The portion of economic losses that is insured also varies significantly by peril, with coverage for flood and earthquake losses typically much lower than for risk from wind and fire.
The 2021 edition of AIR’s white paper Global Modeled Catastrophe Losses bases its global loss metrics on AIR’s latest suite of models, including new models and updates released this year, as well as updated industry exposure databases, the report said.
