Global disaster losses in 2021 pegged at $280 billion
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Global economic losses from natural and man-made disasters totaled $280 billion in 2021, of which $119 billion was insured, according to a report Wednesday from Swiss Reinsurance Co. Ltd.
The $280 billion in losses was the sixth highest on record, according to Swiss Re sigma research, and the 16th highest since 1970 after normalizing for GDP growth effects. The $119 billion of insured losses was the fourth highest on record and included $111 billion in compensation for damage resulting from natural catastrophes.
Natural catastrophes accounted for $270 billion of the total economic losses, among them more than 50 severe flood events globally, Swiss Re said.
While global economic losses from floods reached $82 billion, only $20 billion of that was insured. That floods accounted for 31% of global economic losses from natural catastrophes in 2021, only 2 percentage points less than tropical cyclones, starkly illustrates 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 rigor 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.
The last five years have seen the regular occurrence of multibillion-dollar insured losses from secondary peril events such as severe convective storms, floods and wildfire.
