Just how big a problem is this for risk managers and insurers?
$275 Bn
Total economic losses from
natural disasters in 2022
$60 Bn
Insured property damage
losses from Hurricane Ian,
2nd largest on record
$4.1 Bn
Losses from winter storms Eunice,
Dudley, Franklin in NW Europe in
February 2022
8 million
Average number of acres
burnt annually in the United
States
285
Total number of catastrophic
events in 2022
46
Consecutive years of rising
land and sea temperatures
As is the case with many unpredictable events, major disasters like hurricanes, wildfires, and
floods are increasing the severity of risks and losses.
It actually comes down to one major factor - an increasing tide of population growth in
predominantly risk-prone areas of the country.
For example, let's just look at four states in the Southeastern part of the United States; Florida,
Louisiana, North Carolina, and South Carolina. These just happen to be the four states that are
most susceptible to hurricanes. In the past 50 years, population growth in this burgeoning
area has outpaced the country's overall growth rate by nearly 40%. The region is now home to
more than a quarter of the nation's residents. In addition, with population growth comes more
development of commercial properties and businesses.
For many of these companies, the losses caused by catastrophic events are further
compounded by the risk of business interruption and disruption.
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